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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                          E U R O P E

          Friday, April 19, 2019, Vol. 20, No. 79

                           Headlines



A L B A N I A

PROCREDIT BANK ALBANIA: Fitch Affirms 'BB-' LongTerm IDR


B O S N I A   A N D   H E R Z E G O V I N A

PROCREDIT BANK DD SARAJEVO: Fitch Affirms BB+/B Foreign Curr. IDR


F R A N C E

ANDROMEDA SAS: Fitch Assigns 'B(EXP)' IDR, Outlook Stable
TAURUS FR 2019-1: DBRS Finalizes BB Rating on Class E Notes


I C E L A N D

WOW AIR: Icelandair Chief Executive Disappointed Over Collapse


I R E L A N D

RRE 1 LOAN: Moody's Assigns Ba3 Rating on EUR22.5MM Class E Notes
RRE 1 LOAN: S&P Assigns BB-(sf) Rating on EUR22.50MM Class E Notes


K O S O V O

PROCREDIT BANK SHA: Fitch Affirms 'BB+/B' Issuer Default Ratings


M A C E D O N I A

PROCREDIT AD SKOPJE: Fitch Affirms 'BB+/B' Issue Default Ratings


N E T H E R L A N D S

CAIRN CLO IV: Moody's Gives (P)B3 Rating on EUR16MM Class F-R Notes


P O R T U G A L

MADEIRA: DBRS Confirms BB Long Term Issuer Rating, Trend Positive


R U S S I A

BANK ASPECT: Put on Provisional Administration, License Revoked
DONKHLEBBANK PJSC: Liabilities Exceed Assets, Assessment Shows
EAST-SIBERIAN TRANSPORT: Bankruptcy Hearing Set for April 29
TROIKA-D BANK JSC: On Provisional Administration, License Revoked


S E R B I A

PROCREDIT BANK BEOGRAD: Fitch Affirms BB+/B Issuer Default Ratings


U N I T E D   K I N G D O M

CYBG PLC: Moody's Gives Ba2(hyb) Rating to GBP250MM AT1 Securities
KCA DEUTAG: Moody's Lowers CFR to Caa1, Outlook Stable
TOWD POINT 2019-GRANITE4: S&P Rates $52.9MM Cl. F-Dfrd Notes 'BB'


X X X X X X X X

[*] BOOK REVIEW: Macy's for Sale

                           - - - - -


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A L B A N I A
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PROCREDIT BANK ALBANIA: Fitch Affirms 'BB-' LongTerm IDR
--------------------------------------------------------
Fitch Ratings has affirmed ProCredit Holding AG & Co. KGaA's (PCH)
Long-Term Issuer Default Rating at 'BBB' with a Stable Outlook and
upgraded its Viability Rating (VR) to 'bb' from 'bb-'. The agency
has also affirmed the 'BBB' Long-Term IDR of German subsidiary bank
ProCredit Bank AG (PCBDE).

At the same time, Fitch has affirmed the Long-Term IDRs and VRs of
four subsidiary banks of ProCredit Holding in Bosnia & Herzegovina
(ProCredit Bank d.d. Sarajevo, PCBiH), Kosovo (ProCredit Bank
SH.A., PCBK), North Macedonia (ProCredit AD Skopje, PCBM) and
Serbia (ProCredit Bank ad Beograd, PCBS). Fitch has also affirmed
PCH's Albanian subsidiary's (ProCredit Bank Sh.a., PCBA) Long-Term
IDR at 'BB-' and downgraded its VR to 'b-' from 'b'. The Outlooks
are Stable except for PCBM, which has a Positive Outlook.

Fitch has also withdrawn the expected ratings on PCH's senior
unsecured green bonds of 'BBB(EXP)'. The rating has been withdrawn
because the bonds have not been placed as originally planned.
Although PCH intends to use this source of funding, no transaction
is currently in the pipeline.

The upgrade of PCH's VR predominantly reflects further improvement
in the group's asset quality metrics and capitalisation. The
upgrade also reflects the greater weight Fitch places on the
benefits of the group's German domicile in terms of consolidated
supervision by the German banking regulator (BaFin) and access to
domestic capital and funding markets. These benefits moderately
offset risks relating to the emerging market operating environments
that PCH is exposed to.

The downgrade of PCBA's VR reflects the bank's pre-impairment
operating losses in 2017 and 1H18 and the need for a capital
injection in 2H18 to strengthen solvency. PCH has initiated
restructuring measures at PCBA aimed at restoring its
profitability, predominantly by exploiting cost savings through
closer business ties with PCBK.

KEY RATING DRIVERS

PCH'S IDRS AND SUPPORT RATINGS

PCH's IDRs and Support Rating are driven by Fitch's view of the
potential support it can expect to receive from its core
international financial institution (IFI) shareholders: KfW
(AAA/Stable), IFC and DOEN Foundation (end-2018: combined stake of
35.7%). Apart from the three IFIs, Fitch views Zeitinger Invest
(formerly IPC) and ProCredit Staff Invest as core shareholders in
PCH. These entities have strategic control over the group, through
their status as General Partners within the KGaA structure.

Fitch's view of support is based on the long-term and strategic
commitment of the IFI shareholders, as highlighted by their role
within PCH's structure, the alignment of their own missions of
development finance with that of PCH, and a record of debt and
capital support to PCH and its subsidiary banks.

PCH's VR

PCH's 'bb' VR reflects the group's exposure to difficult emerging
market environments, the relatively narrow (except PCBK) franchises
of the subsidiary banks in their respective jurisdictions and
credit risks inherent in PCH's business model based on lending to
SMEs.

PCH's VR also reflects strong corporate governance and risk
management across the group, underpinned by supervision by BaFin of
the consolidated PCH group, and by sound management. Prudent risk
management and well controlled risk appetite have resulted in the
group's record of asset quality that consistently exceeds the
markets in which it operates. PCH's financial performance has been
stable and resilient through the cycle, including during a period
of significant change in the group's business model.

PCH's VR is based on the consolidated group's financial profile,
and does not incorporate any downward notching at the holding
company level. This reflects the following factors: i) the group is
subject to consolidated supervision and is required to meet
regulatory requirements at the consolidated level; ii) there are no
major legal restrictions in place on upstreaming capital or
liquidity from subsidiaries to PCH; iii) moderate double leverage;
iv) a simple group structure with full or large majority ownership
of banking subsidiaries; and v) common branding across the group.

The group has almost completed the implementation of its new
strategy focused on lending to SMEs and reduction of the legacy
portfolio of very small exposures (below EUR50,000). Its
geographical focus is primarily on South Eastern Europe and Eastern
Europe. The group operates through 13 banking subsidiaries in South
Eastern Europe (70% of the loan book at end-2018), Eastern Europe
(22%), South America (6%; operations in Colombia and Ecuador) and
Germany (2%).

The impaired loans ratio on a consolidated level further improved
over 2018, reflecting the new strategic focus on larger, fully
formalised SMEs. At end-2018, NPLs (defined as IFRS 9 Stage 3
loans) accounted for 3.1% of gross loans (2017: 4.5%). The coverage
of NPLs with specific loan loss allowances was moderate at around
55%, partly reflecting the highly collateralised profile of the
loan book. However, overall coverage was much stronger at around
91%, resulting in a very low 1.8% of uncovered NPLs relative to
Fitch Core Capital (FCC).

Operating profitability improved in 2018 with operating
profit/risk-weighted assets (RWA) at 1.7% (2017: 1.5%), but the
improvement was mostly due to some further cost efficiency
improvements and net release of loan loss charges driven by
recoveries of written-off loans. Net interest income suffered from
further tightening of margins and was not fully compensated by
growing fees and commissions. Fitch believes that the group's
revamped business model implemented in 2013 is likely to generate
lower loan loss charges relative to gross loans, than under the
previous focus on micro loans. However, Fitch expects them to
return to more normalised levels from what it believes was an
unsustainably low level in 2018 and 2017.

The FCC ratio increased by around 70bp to 15.4% at end-2018 despite
around 8.5% growth of RWA over 2018. The FCC improvement
predominantly resulted from a capital increase completed in 1Q18
and reasonable profits generated in 2018. The group's regulatory
capitalisation improved further with a reported CET1 ratio of 14.4%
at end-2018, comfortably above regulatory requirements. However, at
these levels it remains moderate relative to the credit risks the
group faces. Common equity double leverage at PCH was a moderate
113% at end-2018 (2017: 121%).

Granular customer deposits are the group's main source of funding.
At end-2018 they accounted for around 75% of total funding. Senior
and subordinated debt issued by PCH as well as bank funding at PCH
and IFI funding extended directly to subsidiaries complement the
funding structure. Liquidity is well-managed across the group, and
adequate reserves are held at PCH to cover potential liquidity
needs from subsidiary banks in case of stress. The maturity
structure of PCH's debt is well spread, with a large proportion of
medium/longer-term funding and only around 3% of the total maturing
over 2019.

SUBSIDIARY BANKS - IDRs AND SUPPORT RATINGS

The IDRs and Support Ratings of the five South Eastern European
(SEE) banks - PCBA, PCBiH, PCBK, PCBM and PCBS - reflect the
likelihood of potential support from their sole shareholder PCH.

This view takes into account the strategic importance of the South
Eastern European region to PCH, shown by the long standing presence
on these markets, strong integration of the subsidiary banks into
the group and a record of liquidity and funding support provided to
these entities. Fitch's assessment of support also factors in the
full ownership of subsidiaries, common branding and the potential
negative implications of a subsidiary default for the group.

However, the extent to which potential support can be factored into
the subsidiaries' ratings is constrained by the agency's assessment
of risks relating to their respective jurisdictions. Absent of
country risk constraints, the subsidiaries' Long-Term IDRs would
typically be notched down once from the parent's IDR.

PCBM and PCBS's Long-Term Foreign-Currency IDRs are constrained by
the respective Country Ceilings (North Macedonia: BB+, Serbia:
BB+). PCBA, PCBiH and PCBK's Long-Term Foreign-Currency IDRs
reflect Fitch's assessment of transfer and convertibility risks in
jurisdictions in which these banks operate. The Positive Outlook on
PCBM's IDRs reflects the Outlook on the sovereign.

PCBDE's Support Rating and the equalisation of the bank's IDRs with
those of PCH reflect Fitch's view of a high likelihood of parental
support. This view is based primarily on the bank's treasury role
within the group and a strong legal commitment in the form of a
profit and loss transfer agreement, which obliges PCH to replenish
PCBDE's equity should the latter suffer a loss. The Stable Outlook
reflects that on the parent.

SUBSIDIARY BANKS – VRs

The VRs of PCH's South-Eastern European subsidiaries reflect, to
varying degrees, the risks related to the challenging operating
environments making the banks performance prone to potential market
shocks, which cannot be fully mitigated by the benefits of the
prudent risk management framework, unique corporate culture and
strong corporate governance implemented across the PCH group. For
PCBA and PCBiH, the VRs also consider the banks' constrained
revenue and internal capital generation capacity due to limited
franchises and small scale.

All five banks' business models are focused on financing larger and
more established medium-sized businesses and development in green
lending. The banks are undergoing the implementation of new
group-wide strategy and over the last two years they have
significantly reduced their branch network, which as expected,
resulted in the loss of some market share, especially among
depositors considered non-core.

All five banks' asset quality has continued to improve, driven by
healthy new loan origination, problem loans off-loading, tight
group control and a supportive economic conditions. At end-1H18,
NPLs (Stage 3 loans) at PCBA accounted for 8.8% of gross loans,
6.3% at PCBiH (excluding fully-provisioned written-off loans as per
group definition) and 4.1% at PCBK. PCBM and PCBS's indicators were
below 2.5%. Coverage of NPLs by loan loss allowances was solid - at
over 90% for PCBA, PCBK and PCBM - or moderate at about 60%-70% at
the remaining banks. Fitch expects the banks' moderate risk
appetites will support stable asset quality in 2019 and beyond.

PCBK's strong position in its small domestic market (20% market
share in total banking sector assets at end-1H18) supports stable
and recurring profitability that allows a steady flow of dividends
to the parent. PCBM and PCBS managed to maintain a reasonable level
of profitability despite a further contraction in margins and
continued change in the client structure towards larger, more
formalised SMEs. The Kosovar subsidiary reported the strongest
operating profit/ risk-weighted assets ratios at 2.8% at end-1H18.
PCBM and PCBS's ratios stood at 1.8% and 1.5%, respectively.

Weak pre-impairment operating profitability makes PCBA and PCBiH
reliant on capital injections from shareholder. PCBiH reported a
small profit in 2018 (BAM48,500) supported by the reversal of
impairment charges. With parental support both banks maintained
capital ratios over regulatory requirements and realised growth of
business in 2018. PCBiH holds an adequate capital buffer with a FCC
ratio of 15.3% at end-1H18. Fitch views PCBA's FCC ratio of 12.7%
(3Q18) as providing only a modest buffer against unforeseen shocks
given bank's focus on SME lending, ongoing restructuring announced
by the group and difficult operating environment.

PCBK capitalisation (FCC ratio of 17.8% at end-1H18) is a rating
strength considering decent profitability, improved asset quality
and high provision coverage of NPLs. Capitalisation at PCBM and
PCBS was solid (FCC ratios of 13.0% and 18.8%, respectively, at
end-1H18) supported by reasonable profitability and strong loan
portfolio quality. Net NPLs were low (not exceeding 5% of FCC) at
both banks.

The funding mix at all five banks is dominated by customer deposits
and supported by long-term sources from IFIs earmarked for various
SMEs development projects as well as by loan facilities from the
group. PCBA and PCBK rely on retail deposits, which account for
about 80% of customer funding, while three other banks customer
deposit bases are balanced between private individuals and SMEs.
The funding gap, driven by outflow of some retail deposits recorded
in 1H18 due to branch network optimisation and solid (PCBiH, PCBM
and PCBS) or moderate (PCBA and PCBK) lending growth, was closed
with wholesale funding. Consequently, all five banks reported
higher gross loans/deposits ratios compared to end-2017.

The banks' adequate liquidity is underpinned by their large pools
of liquid assets containing cash, mandatory reserves in central
banks and, at selected banks, government or highly rated debt
securities. The liquidity coverage and net stable funding ratios
were above 100% at end-2018.

Fitch does not assign a VR to PCBDE because the bank does not have
a meaningful standalone franchise, and its operations rely strongly
on integration within the broader group.

PCBDE's role in the group is focused on providing treasury,
clearing and liquidity management services to sister banks.
Placements from sister companies and PCH tend to be short term and
are therefore reinvested in highly liquid assets. Funding provided
to sister banks is sourced from deposits attracted on the German
market. PCBDE maintains a net short position in operations with its
sister banks.

At end-3Q18, about 56% of PCBDE's assets were cash and other liquid
assets, mainly central bank deposits and interbank placements with
highly rated German banks. Funding provided to PCH group sister
banks and co-financing of some of their large credit exposures
accounted for 30% and 8% of assets at end-3Q18, respectively. The
group's international payments clearing has been centralised at
PCBDE.

PCBDE's other operations still have a narrow focus with a
medium-term goal of widening the business with German firms active
in south-east and eastern Europe. PCBDE acts as a central treasury
for the Group and sister banks place surplus liquidity there.
Placements from sister banks and other group companies (including
the holding company) accounted for about 54% of the bank's
liabilities at end-3Q18. PCBDE is also attracting deposits from
German customers, both retail and institutional. At end-3Q18 they
accounted for around 40% of PCBDE's liabilities.

The bank is a regulatory anchor for the group's consolidated
supervision by BaFin and Bundesbank. Fitch believes the regulator
would be supportive of any measures by PCH to protect German
deposits and ensure the bank's viability. A profit and loss
transfer agreement between the parent and the bank includes a
provision requiring a capital injection by the parent if PCBDE's
regulatory total capital ratio falls below 13%.

PCBDE DEPOSIT RATINGS

PCBDE's Deposit Ratings are aligned with the bank's IDRs. Fitch has
not given any Deposit Rating uplift because in Fitch's view, the
bank's qualifying debt buffers would not afford any obvious
additional benefit over and above the support benefit already
factored into the bank's IDRs, even if they reach a sufficient size
in future.

RATING SENSITIVITIES

IDRS AND SUPPORT RATINGS

A change in Fitch's view of the support available to PCH, for
example, due to the exit of one or more core shareholders, or a
change in their support stance, could be negative for PCH's IDRs.
However, the Stable Outlook reflects Fitch's view that the
propensity and ability of PCH's owners to provide support are
unlikely to change in the near to medium term. PCBDE's ratings are
likely to move in tandem with those of PCH.

The IDRs of the five SEE banks are sensitive to changes in Fitch's
assessment of support from PCH and any material weakening of the
commitment of PCH to the respective countries. Fitch does not
expect any such changes in the foreseeable future.

Changes in Fitch's perception of country risks, in particular
transfer and convertibility risks, in Albania, Bosnia &
Herzegovina, Kosovo, North Macedonia and Serbia could also result
in changes to the respective subsidiaries' IDRs. These perceptions
are most likely to change in North Macedonia given the Positive
Outlook on the sovereign rating.

VRs

Further upside for PCH's VR could result from an improvement in the
operating environments of the jurisdictions where the group has a
presence and a continued strengthening of asset quality and
capitalisation metrics. A marked deterioration in asset quality and
capitalisation would be negative for the VR.

The five subsidiary banks' VRs could be downgraded in the event of
a material worsening of their respective operating environments or
in case of a marked deterioration in asset quality that puts
pressure on banks' profitability and capitalisation.

The rating actions are as follows:

ProCredit Holding AG & Co. KGaA (PCH)

  Long-Term IDR affirmed at 'BBB'; Outlook Stable
  Short-Term IDR affirmed at 'F2'
  Viability Rating upgraded to 'bb' from 'bb-'
  Support Rating affirmed at '2'
  Senior unsecured expected rating of 'BBB(EXP)' withdrawn

PCBDE

  Long-Term IDR affirmed at 'BBB'; Outlook Stable
  Short-Term IDR affirmed at 'F2'
  Support Rating affirmed at '2'
  Long-Term Deposit Rating affirmed at 'BBB'
  Short-Term Deposit Rating affirmed at 'F2'

PCBA

  Long-Term Foreign-Currency IDR affirmed at 'BB-';
   Outlook Stable
  Short-Term Foreign-Currency IDR affirmed at 'B'
  Long-Term Local-Currency IDR affirmed at 'BB-';
   Outlook Stable
  Short-Term Local-Currency IDR affirmed at 'B'
  Viability Rating downgraded to 'b-' from 'b'
  Support Rating affirmed at '3'

PCBiH

  Long-Term Foreign-Currency IDR: affirmed at 'B+';
   Outlook Stable
  Short-Term Foreign-Currency IDR: affirmed at 'B'
  Long-Term Local-Currency IDR: affirmed at 'BB-'
    Outlook Stable
  Short-Term Local-Currency IDR: affirmed at 'B'
  Viability Rating: affirmed at 'b-'
  Support Rating: affirmed at '4'

PCBK

  Long-Term Foreign-Currency IDR: affirmed at 'BB';
   Outlook Stable
  Short-Term Foreign-Currency IDR: affirmed at 'B'
  Viability Rating: affirmed at 'b+'
  Support Rating: affirmed at '3'

PCBM

  Long-Term Foreign-Currency IDR affirmed at 'BB+';
   Outlook Positive
  Short-Term Foreign-Currency IDR affirmed at 'B'
  Long-Term Local-Currency IDR affirmed at 'BB+';
   Outlook Positive
  Short-Term Local-Currency IDR affirmed at 'B'
  Viability Rating affirmed at 'b+'
  Support Rating affirmed at '3'

PCBS

  Long-Term Foreign-Currency IDR: affirmed at 'BB+';
    Outlook Stable
  Short-Term Foreign-Currency IDR: affirmed at 'B'
  Long-Term Local-Currency IDR: affirmed at 'BB+'
    Outlook Stable
  Short-Term Local-Currency IDR: affirmed at 'B'
  Viability Rating: affirmed at 'bb-'
  Support Rating: affirmed at '3'




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B O S N I A   A N D   H E R Z E G O V I N A
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PROCREDIT BANK DD SARAJEVO: Fitch Affirms BB+/B Foreign Curr. IDR
-----------------------------------------------------------------
Fitch Ratings has affirmed ProCredit Holding AG & Co. KGaA's (PCH)
Long-Term Issuer Default Rating at 'BBB' with a Stable Outlook and
upgraded its Viability Rating (VR) to 'bb' from 'bb-'. The agency
has also affirmed the 'BBB' Long-Term IDR of German subsidiary bank
ProCredit Bank AG (PCBDE).

At the same time, Fitch has affirmed the Long-Term IDRs and VRs of
four subsidiary banks of ProCredit Holding in Bosnia & Herzegovina
(ProCredit Bank d.d. Sarajevo, PCBiH), Kosovo (ProCredit Bank
SH.A., PCBK), North Macedonia (ProCredit AD Skopje, PCBM) and
Serbia (ProCredit Bank ad Beograd, PCBS). Fitch has also affirmed
PCH's Albanian subsidiary's (ProCredit Bank Sh.a., PCBA) Long-Term
IDR at 'BB-' and downgraded its VR to 'b-' from 'b'. The Outlooks
are Stable except for PCBM, which has a Positive Outlook.

Fitch has also withdrawn the expected ratings on PCH's senior
unsecured green bonds of 'BBB(EXP)'. The rating has been withdrawn
because the bonds have not been placed as originally planned.
Although PCH intends to use this source of funding, no transaction
is currently in the pipeline.

The upgrade of PCH's VR predominantly reflects further improvement
in the group's asset quality metrics and capitalisation. The
upgrade also reflects the greater weight Fitch places on the
benefits of the group's German domicile in terms of consolidated
supervision by the German banking regulator (BaFin) and access to
domestic capital and funding markets. These benefits moderately
offset risks relating to the emerging market operating environments
that PCH is exposed to.

The downgrade of PCBA's VR reflects the bank's pre-impairment
operating losses in 2017 and 1H18 and the need for a capital
injection in 2H18 to strengthen solvency. PCH has initiated
restructuring measures at PCBA aimed at restoring its
profitability, predominantly by exploiting cost savings through
closer business ties with PCBK.

KEY RATING DRIVERS

PCH'S IDRS AND SUPPORT RATINGS

PCH's IDRs and Support Rating are driven by Fitch's view of the
potential support it can expect to receive from its core
international financial institution (IFI) shareholders: KfW
(AAA/Stable), IFC and DOEN Foundation (end-2018: combined stake of
35.7%). Apart from the three IFIs, Fitch views Zeitinger Invest
(formerly IPC) and ProCredit Staff Invest as core shareholders in
PCH. These entities have strategic control over the group, through
their status as General Partners within the KGaA structure.

Fitch's view of support is based on the long-term and strategic
commitment of the IFI shareholders, as highlighted by their role
within PCH's structure, the alignment of their own missions of
development finance with that of PCH, and a record of debt and
capital support to PCH and its subsidiary banks.

PCH's VR

PCH's 'bb' VR reflects the group's exposure to difficult emerging
market environments, the relatively narrow (except PCBK) franchises
of the subsidiary banks in their respective jurisdictions and
credit risks inherent in PCH's business model based on lending to
SMEs.

PCH's VR also reflects strong corporate governance and risk
management across the group, underpinned by supervision by BaFin of
the consolidated PCH group, and by sound management. Prudent risk
management and well controlled risk appetite have resulted in the
group's record of asset quality that consistently exceeds the
markets in which it operates. PCH's financial performance has been
stable and resilient through the cycle, including during a period
of significant change in the group's business model.

PCH's VR is based on the consolidated group's financial profile,
and does not incorporate any downward notching at the holding
company level. This reflects the following factors: i) the group is
subject to consolidated supervision and is required to meet
regulatory requirements at the consolidated level; ii) there are no
major legal restrictions in place on upstreaming capital or
liquidity from subsidiaries to PCH; iii) moderate double leverage;
iv) a simple group structure with full or large majority ownership
of banking subsidiaries; and v) common branding across the group.

The group has almost completed the implementation of its new
strategy focused on lending to SMEs and reduction of the legacy
portfolio of very small exposures (below EUR50,000). Its
geographical focus is primarily on South Eastern Europe and Eastern
Europe. The group operates through 13 banking subsidiaries in South
Eastern Europe (70% of the loan book at end-2018), Eastern Europe
(22%), South America (6%; operations in Colombia and Ecuador) and
Germany (2%).

The impaired loans ratio on a consolidated level further improved
over 2018, reflecting the new strategic focus on larger, fully
formalised SMEs. At end-2018, NPLs (defined as IFRS 9 Stage 3
loans) accounted for 3.1% of gross loans (2017: 4.5%). The coverage
of NPLs with specific loan loss allowances was moderate at around
55%, partly reflecting the highly collateralised profile of the
loan book. However, overall coverage was much stronger at around
91%, resulting in a very low 1.8% of uncovered NPLs relative to
Fitch Core Capital (FCC).

Operating profitability improved in 2018 with operating
profit/risk-weighted assets (RWA) at 1.7% (2017: 1.5%), but the
improvement was mostly due to some further cost efficiency
improvements and net release of loan loss charges driven by
recoveries of written-off loans. Net interest income suffered from
further tightening of margins and was not fully compensated by
growing fees and commissions. Fitch believes that the group's
revamped business model implemented in 2013 is likely to generate
lower loan loss charges relative to gross loans, than under the
previous focus on micro loans. However, Fitch expects them to
return to more normalised levels from what it believes was an
unsustainably low level in 2018 and 2017.

The FCC ratio increased by around 70bp to 15.4% at end-2018 despite
around 8.5% growth of RWA over 2018. The FCC improvement
predominantly resulted from a capital increase completed in 1Q18
and reasonable profits generated in 2018. The group's regulatory
capitalisation improved further with a reported CET1 ratio of 14.4%
at end-2018, comfortably above regulatory requirements. However, at
these levels it remains moderate relative to the credit risks the
group faces. Common equity double leverage at PCH was a moderate
113% at end-2018 (2017: 121%).

Granular customer deposits are the group's main source of funding.
At end-2018 they accounted for around 75% of total funding. Senior
and subordinated debt issued by PCH as well as bank funding at PCH
and IFI funding extended directly to subsidiaries complement the
funding structure. Liquidity is well-managed across the group, and
adequate reserves are held at PCH to cover potential liquidity
needs from subsidiary banks in case of stress. The maturity
structure of PCH's debt is well spread, with a large proportion of
medium/longer-term funding and only around 3% of the total maturing
over 2019.

SUBSIDIARY BANKS - IDRs AND SUPPORT RATINGS

The IDRs and Support Ratings of the five South Eastern European
(SEE) banks - PCBA, PCBiH, PCBK, PCBM and PCBS - reflect the
likelihood of potential support from their sole shareholder PCH.

This view takes into account the strategic importance of the South
Eastern European region to PCH, shown by the long standing presence
on these markets, strong integration of the subsidiary banks into
the group and a record of liquidity and funding support provided to
these entities. Fitch's assessment of support also factors in the
full ownership of subsidiaries, common branding and the potential
negative implications of a subsidiary default for the group.

However, the extent to which potential support can be factored into
the subsidiaries' ratings is constrained by the agency's assessment
of risks relating to their respective jurisdictions. Absent of
country risk constraints, the subsidiaries' Long-Term IDRs would
typically be notched down once from the parent's IDR.

PCBM and PCBS's Long-Term Foreign-Currency IDRs are constrained by
the respective Country Ceilings (North Macedonia: BB+, Serbia:
BB+). PCBA, PCBiH and PCBK's Long-Term Foreign-Currency IDRs
reflect Fitch's assessment of transfer and convertibility risks in
jurisdictions in which these banks operate. The Positive Outlook on
PCBM's IDRs reflects the Outlook on the sovereign.

PCBDE's Support Rating and the equalisation of the bank's IDRs with
those of PCH reflect Fitch's view of a high likelihood of parental
support. This view is based primarily on the bank's treasury role
within the group and a strong legal commitment in the form of a
profit and loss transfer agreement, which obliges PCH to replenish
PCBDE's equity should the latter suffer a loss. The Stable Outlook
reflects that on the parent.

SUBSIDIARY BANKS – VRs

The VRs of PCH's South-Eastern European subsidiaries reflect, to
varying degrees, the risks related to the challenging operating
environments making the banks performance prone to potential market
shocks, which cannot be fully mitigated by the benefits of the
prudent risk management framework, unique corporate culture and
strong corporate governance implemented across the PCH group. For
PCBA and PCBiH, the VRs also consider the banks' constrained
revenue and internal capital generation capacity due to limited
franchises and small scale.

All five banks' business models are focused on financing larger and
more established medium-sized businesses and development in green
lending. The banks are undergoing the implementation of new
group-wide strategy and over the last two years they have
significantly reduced their branch network, which as expected,
resulted in the loss of some market share, especially among
depositors considered non-core.

All five banks' asset quality has continued to improve, driven by
healthy new loan origination, problem loans off-loading, tight
group control and a supportive economic conditions. At end-1H18,
NPLs (Stage 3 loans) at PCBA accounted for 8.8% of gross loans,
6.3% at PCBiH (excluding fully-provisioned written-off loans as per
group definition) and 4.1% at PCBK. PCBM and PCBS's indicators were
below 2.5%. Coverage of NPLs by loan loss allowances was solid - at
over 90% for PCBA, PCBK and PCBM - or moderate at about 60%-70% at
the remaining banks. Fitch expects the banks' moderate risk
appetites will support stable asset quality in 2019 and beyond.

PCBK's strong position in its small domestic market (20% market
share in total banking sector assets at end-1H18) supports stable
and recurring profitability that allows a steady flow of dividends
to the parent. PCBM and PCBS managed to maintain a reasonable level
of profitability despite a further contraction in margins and
continued change in the client structure towards larger, more
formalised SMEs. The Kosovar subsidiary reported the strongest
operating profit/ risk-weighted assets ratios at 2.8% at end-1H18.
PCBM and PCBS's ratios stood at 1.8% and 1.5%, respectively.

Weak pre-impairment operating profitability makes PCBA and PCBiH
reliant on capital injections from shareholder. PCBiH reported a
small profit in 2018 (BAM48,500) supported by the reversal of
impairment charges. With parental support both banks maintained
capital ratios over regulatory requirements and realised growth of
business in 2018. PCBiH holds an adequate capital buffer with a FCC
ratio of 15.3% at end-1H18. Fitch views PCBA's FCC ratio of 12.7%
(3Q18) as providing only a modest buffer against unforeseen shocks
given bank's focus on SME lending, ongoing restructuring announced
by the group and difficult operating environment.

PCBK capitalisation (FCC ratio of 17.8% at end-1H18) is a rating
strength considering decent profitability, improved asset quality
and high provision coverage of NPLs. Capitalisation at PCBM and
PCBS was solid (FCC ratios of 13.0% and 18.8%, respectively, at
end-1H18) supported by reasonable profitability and strong loan
portfolio quality. Net NPLs were low (not exceeding 5% of FCC) at
both banks.

The funding mix at all five banks is dominated by customer deposits
and supported by long-term sources from IFIs earmarked for various
SMEs development projects as well as by loan facilities from the
group. PCBA and PCBK rely on retail deposits, which account for
about 80% of customer funding, while three other banks customer
deposit bases are balanced between private individuals and SMEs.
The funding gap, driven by outflow of some retail deposits recorded
in 1H18 due to branch network optimisation and solid (PCBiH, PCBM
and PCBS) or moderate (PCBA and PCBK) lending growth, was closed
with wholesale funding. Consequently, all five banks reported
higher gross loans/deposits ratios compared to end-2017.

The banks' adequate liquidity is underpinned by their large pools
of liquid assets containing cash, mandatory reserves in central
banks and, at selected banks, government or highly rated debt
securities. The liquidity coverage and net stable funding ratios
were above 100% at end-2018.

Fitch does not assign a VR to PCBDE because the bank does not have
a meaningful standalone franchise, and its operations rely strongly
on integration within the broader group.

PCBDE's role in the group is focused on providing treasury,
clearing and liquidity management services to sister banks.
Placements from sister companies and PCH tend to be short term and
are therefore reinvested in highly liquid assets. Funding provided
to sister banks is sourced from deposits attracted on the German
market. PCBDE maintains a net short position in operations with its
sister banks.

At end-3Q18, about 56% of PCBDE's assets were cash and other liquid
assets, mainly central bank deposits and interbank placements with
highly rated German banks. Funding provided to PCH group sister
banks and co-financing of some of their large credit exposures
accounted for 30% and 8% of assets at end-3Q18, respectively. The
group's international payments clearing has been centralised at
PCBDE.

PCBDE's other operations still have a narrow focus with a
medium-term goal of widening the business with German firms active
in south-east and eastern Europe. PCBDE acts as a central treasury
for the Group and sister banks place surplus liquidity there.
Placements from sister banks and other group companies (including
the holding company) accounted for about 54% of the bank's
liabilities at end-3Q18. PCBDE is also attracting deposits from
German customers, both retail and institutional. At end-3Q18 they
accounted for around 40% of PCBDE's liabilities.

The bank is a regulatory anchor for the group's consolidated
supervision by BaFin and Bundesbank. Fitch believes the regulator
would be supportive of any measures by PCH to protect German
deposits and ensure the bank's viability. A profit and loss
transfer agreement between the parent and the bank includes a
provision requiring a capital injection by the parent if PCBDE's
regulatory total capital ratio falls below 13%.

PCBDE DEPOSIT RATINGS

PCBDE's Deposit Ratings are aligned with the bank's IDRs. Fitch has
not given any Deposit Rating uplift because in Fitch's view, the
bank's qualifying debt buffers would not afford any obvious
additional benefit over and above the support benefit already
factored into the bank's IDRs, even if they reach a sufficient size
in future.

RATING SENSITIVITIES

IDRS AND SUPPORT RATINGS

A change in Fitch's view of the support available to PCH, for
example, due to the exit of one or more core shareholders, or a
change in their support stance, could be negative for PCH's IDRs.
However, the Stable Outlook reflects Fitch's view that the
propensity and ability of PCH's owners to provide support are
unlikely to change in the near to medium term. PCBDE's ratings are
likely to move in tandem with those of PCH.

The IDRs of the five SEE banks are sensitive to changes in Fitch's
assessment of support from PCH and any material weakening of the
commitment of PCH to the respective countries. Fitch does not
expect any such changes in the foreseeable future.

Changes in Fitch's perception of country risks, in particular
transfer and convertibility risks, in Albania, Bosnia &
Herzegovina, Kosovo, North Macedonia and Serbia could also result
in changes to the respective subsidiaries' IDRs. These perceptions
are most likely to change in North Macedonia given the Positive
Outlook on the sovereign rating.

VRs

Further upside for PCH's VR could result from an improvement in the
operating environments of the jurisdictions where the group has a
presence and a continued strengthening of asset quality and
capitalisation metrics. A marked deterioration in asset quality and
capitalisation would be negative for the VR.

The five subsidiary banks' VRs could be downgraded in the event of
a material worsening of their respective operating environments or
in case of a marked deterioration in asset quality that puts
pressure on banks' profitability and capitalisation.

The rating actions are as follows:

ProCredit Holding AG & Co. KGaA (PCH)

  Long-Term IDR affirmed at 'BBB'; Outlook Stable
  Short-Term IDR affirmed at 'F2'
  Viability Rating upgraded to 'bb' from 'bb-'
  Support Rating affirmed at '2'
  Senior unsecured expected rating of 'BBB(EXP)' withdrawn

PCBDE

  Long-Term IDR affirmed at 'BBB'; Outlook Stable
  Short-Term IDR affirmed at 'F2'
  Support Rating affirmed at '2'
  Long-Term Deposit Rating affirmed at 'BBB'
  Short-Term Deposit Rating affirmed at 'F2'

PCBA

  Long-Term Foreign-Currency IDR affirmed at 'BB-';
   Outlook Stable
  Short-Term Foreign-Currency IDR affirmed at 'B'
  Long-Term Local-Currency IDR affirmed at 'BB-';
   Outlook Stable
  Short-Term Local-Currency IDR affirmed at 'B'
  Viability Rating downgraded to 'b-' from 'b'
  Support Rating affirmed at '3'

PCBiH

  Long-Term Foreign-Currency IDR: affirmed at 'B+';
   Outlook Stable
  Short-Term Foreign-Currency IDR: affirmed at 'B'
  Long-Term Local-Currency IDR: affirmed at 'BB-'
    Outlook Stable
  Short-Term Local-Currency IDR: affirmed at 'B'
  Viability Rating: affirmed at 'b-'
  Support Rating: affirmed at '4'

PCBK

  Long-Term Foreign-Currency IDR: affirmed at 'BB';
   Outlook Stable
  Short-Term Foreign-Currency IDR: affirmed at 'B'
  Viability Rating: affirmed at 'b+'
  Support Rating: affirmed at '3'

PCBM

  Long-Term Foreign-Currency IDR affirmed at 'BB+';
   Outlook Positive
  Short-Term Foreign-Currency IDR affirmed at 'B'
  Long-Term Local-Currency IDR affirmed at 'BB+';
   Outlook Positive
  Short-Term Local-Currency IDR affirmed at 'B'
  Viability Rating affirmed at 'b+'
  Support Rating affirmed at '3'

PCBS

  Long-Term Foreign-Currency IDR: affirmed at 'BB+';
    Outlook Stable
  Short-Term Foreign-Currency IDR: affirmed at 'B'
  Long-Term Local-Currency IDR: affirmed at 'BB+'
    Outlook Stable
  Short-Term Local-Currency IDR: affirmed at 'B'
  Viability Rating: affirmed at 'bb-'
  Support Rating: affirmed at '3'




===========
F R A N C E
===========

ANDROMEDA SAS: Fitch Assigns 'B(EXP)' IDR, Outlook Stable
---------------------------------------------------------
Fitch Ratings has assigned Andromeda SAS a first-time expected
Long-Term Issuer Default Rating of 'B(EXP)' with Stable Outlook.

Andromeda is an entity incorporated by funds advised by CVC to
undertake the acquisition of Evolem's equity stake in April SA
(April). April is the leading wholesale broker within the French
insurance market, with a distinctive presence in the health and
protection and creditor insurance segments and also an
underwriting business via regulated insurance subsidiaries.

The assignment of the final rating is contingent on the completion

of the acquisition of April by Andromeda following the block
purchase of Evolem's stake, the issuance of the rated financial
instruments, and the receipt of final documents conforming to
information already received, along with the finalisation of the
reorganisation of the corporate structure. Should the consortium
led by CVC not attain full ownership or the legal squeeze-out
threshold, financial debt on Andromeda would adjust
proportionally, with neutral effects on the rating. If minority
shareholders remain, Fitch will consider key factors including
dividends to minorities and the potential influence of minority
shareholders.

KEY RATING DRIVERS

Mature French Brokerage Market: April is the largest wholesale
broker in the mature and modestly growing French insurance market.

In particular, it benefits from a strong position in health
insurance and from the market expansion linked to an ageing
population. Fitch expects the company to benefit from expected
market consolidation. Moreover, the utilisation of digital
insurtech tools may capture more parts of the insurance value
chain, in addition to the already substantial infrastructure
operated around underwriting, claims management and customer on-
boarding.

Diversified Product Offering: April has a mix of product lines in
creditor, health and protection and property and casualty. This
mix, combined with its insurance operations, providing upstream
dividends to the brokerage entity, give April a balanced product
offering. Nevertheless, April remains predominantly exposed to the

health and protection segment both in terms of GWP (gross written
premium) and EBITDA.

Growing Health Segment: Growth of the health and protection market

in France reached 3% p.a. in 2012-2018 while a 2 to 3% annual
growth is expected up to 2021. Health insurance is driven by
growing health expenditure, an ageing population and manageable
changes in regulations. The French population has been ageing with

the over 60-year-old cohorts expected to grow to a 29% share by
2030. As a result, growth in healthcare spending has been
consistent and independent of macro trends.

New regulations, such as RAC0, are expected to further increase
private health insurance coverage. In addition, reforms have
spurred growth in brokers' activity in health and protection, one
example being the abolition of the clause of designation for
protection insurance, which previously linked part of the contract

base exclusively to complementary contracts providers.

Credit Protection Stable: The credit protection market in France
shows stable fundamentals and a fairly controlled risk profile.
The outstanding stock of mortgages is expected to grow 3% annually

until 2020 to reach over EUR1.1 trillion in a context where, given

the mandatory nature of the credit protection insurance, the
overall premia is directly linked to the stock of mortgages
outstanding, while new underwriting is historically correlated to
mortgage production.

The personal choice by customers to pursue individual delegated
premiums directly on the market is expected to develop further,
due to lower pricing and favourable changes in laws and
regulations. The adoption of recent market reforms in the country
(e.g. the Bourquin Law) provides the option to switch contracts
annually, potentially driving growth of individual delegated
policies of between 3% and 8% on a yearly basis.

Reorganisation of Insurance Subsidiaries: April is currently
reorganising its insurance subsidiaries and will divest its non-
core operations. April is also in the process of settling a tax
case with French tax authorities with a EUR15 million liability
estimated by the company. Otherwise the insurance subsidiaries
appear to be well-capitalised under regulatory requirements and
are expected to pay dividends.

Well-capitalised Core Insurers: Axeria Prevoyance will remain the
key insurance entity of Andromeda. The entity uses the brokerage
network of April to underwrite part of its premiums with a captive

approach. Its Solvency 2 ratio and profitability are very strong,
while maintaining a low level of risky assets as a proportion of
capital. This has allowed a constant dividend stream of around
EUR4 million on average for the last five years. Another core
entity is Solucia, a small captive legal protection player with
adequate solvency ratios, and its dividend stream will improve
from currently limited levels, according to management, over the
plan. Fitch's expectations include an annual dividend stream of
about EUR12 million from the insurance entities from 2020.

High Leverage offset by Strong Cash Flow: Fitch forecasts April
will have funds flow from operations (FFO) adjusted gross leverage

of 6.7x for 2020, normalised for dividends paid by its insurance
subsidiaries. Fitch expects that FFO adjusted gross leverage
should gradually decline to 6.4x by end-2022. This de-leveraging
will be supported by stabilised free cash flow (FCF) margins of
around 6% as dividends from the insurance subsidiaries resume.

DERIVATION SUMMARY

April has significantly smaller scale than its publicly rated
insurance broker peers and has a less diverse product line. Its
expertise lies in niche, high-margin product lines and its leading

position within the French wholesale brokerage business
proposition. In comparison with Acropole BidCo SAS (Siaci Saint
Honore; B/Stable) April is larger in size and has a more
diversified and consumer-oriented proposition, versus the B2B
model of its peer. Compared with Ardonagh Midco 3 plc (B/Negative)

April is comparable in target clientele, although the distribution

model is partially different (Ardonagh is retail-focused) and
slightly smaller in size. Both companies have comparable
deleverage dynamics, although April's leverage is higher on an FFO

adjusted gross basis at 8.4x pro-forma for the transaction in
2018.

KEY ASSUMPTIONS

  -- Gross margin to grow at CAGR of 3.1% over 2019-2022

  -- Brokerage EBITDA margin of 16.8% on average over 2019-2022

  -- Capex constant at EUR17 million per annum

  -- Change in operating working capital negative for around EUR5
     million annually over 2019-2022

  -- One-off tax fine on Maltese operations of EUR15 million for
     2020 based on agreement with vendors

Key Recovery Assumptions

   -- Fitch assesses that the company will be an ongoing concern
      in bankruptcy as the majority of the value of April lies
      in the brand, the client portfolio and its infrastructure
      for managing relationships with retail brokers, final
      customers and insurances. Consequently, it recommends
      using the going concern approach for its recovery analysis.

  -- Fitch uses a 20% discount to its EUR88 million brokerage
     EBITDA based on the expected LTM figure at December 2018
     pro-forma for the new company's scope post disposals.

  -- Fitch applies a 5.5x multiple to reflect April's leading
     position in the French corporate brokerage market as well
     as the company' strong FCF generation.

  -- Fitch accounts for a supplementary value from insurance
     subsidiaries of EUR66 million, dervived from the same
     multiple of 5.5x being applied to an average estimated
     value of upstreamed dividends of EUR12 million.

RATING SENSITIVITIES

Developments That May, Individually or Collectively, Lead to
Positive Rating Action

  - FFO adjusted gross leverage below 5.5x

  - FFO fixed charge coverage above 2.5x

  - Succesful expansion of GWP volumes with increased adoption
    of digitalised model

  - FCF conversion consistently in line with business plan

Developments That May, Individually or Collectively, Lead to
Negative Rating Action

  - FFO adjusted gross leverage above 7.0x

  - FFO fixed charge coverage below 2.0x

  - Unsuccesful restructuring of insurance subsidiaries, including

    solvency issues and decline in dividends

LIQUIDITY AND DEBT STRUCTURE

Fitch assesses April's liquidity as satisfactory based on yearly
consistent cash generation under its rating case and due to the
presence of a EUR100 million revolving credit facility not
affected by clean-down provisions.


TAURUS FR 2019-1: DBRS Finalizes BB Rating on Class E Notes
-----------------------------------------------------------
DBRS Ratings GmbH finalized its provisional ratings of the
Commercial Mortgage-Backed Floating-Rate Notes issued by Taurus
2019-1 FR DAC as follows:

-- Class A at AAA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (sf)

All trends are Stable.

Taurus 2019-1 FR DAC (the Issuer) is the securitization of 95%
interest of a EUR 249.6 million 65% loan-to-value (LTV) five-year
senior commercial real estate acquisition facility advanced by Bank
of America Merrill Lynch International DAC (BofAML or the Loan
Seller) to Colony Capital (Colony or the sponsor) in the context of
a sale-and-lease-back operation between Colony and Électricité de
France (EDF). The 206 assets securing the senior loan are held by
three French borrowers: ColPower SCI, ColPowerSister SAS and ColMDB
SAS. There are 53 assets held under ColMDB SAS that form a
liquidation pool and are expected to be fully disposed of within
five years. BofAML also provided a co-terminus EUR 53.3 million
mezzanine term loan, which is structurally and contractually
subordinated to the senior loan. The mezzanine loan LTV is 78.9%.
However, the mezzanine facility is not part of the transaction.

The portfolio is part of a larger sale-and-leaseback operation
undertaken by EDF to reorganize its real estate assets. EDF had two
other portfolios transacted in one public and one private deal in
2017 and 2018, respectively. The portfolio for this transaction,
which is the third portfolio from EDF, mainly comprises office
properties (69.1% of the gross lettable area or GLA) and
light-industrial assets (30.0% of GLA). EDF and its subsidiaries
have historically occupied the assets and currently, 93.5% of the
GLA is occupied by EDF and its ENEDIS subsidiary. The remaining
1.9% GLA is left to other public-sector tenants including Gaz
Réseau Distribution France SA (GrDF), GNVert, Orange and TDF. The
assets are located across France with the highest market value (MV)
concentrations in Southeastern France as a result of the high MVs
of assets located in Lyon and Marseille.

The office portfolio was valued by CBRE (the appraiser) on August
31, 2018, for a total MV of EUR 384.1 million. The appraiser also
assessed that the portfolio had a vacant possession value (VPV) of
EUR 269.9 million. The sponsor plans to establish a long-term EDF
core asset platform and intends to invest EUR 16.3 million in capex
and maintenance in the portfolio. If the investment programme is
successfully carried out, the renovations are expected to increase
the portfolio MV. DBRS understands that some of the CapEx
investment will be used on disposal assets to facilitate the sales
process. Moreover, the sponsor has budgeted EUR 16.9 million to
incentivize the main tenant, EDF, for a lease re-gearing in the
future. In DBRS's view, a ten- to a 12-year lease with a strong
tenant would improve the underlying credit quality of the
portfolio.

Another feature of the senior loan is its target loan amount (TLA)
settings. Based on the sponsor's disposal plan, the senior loan
needs to be partially paid down in the first three years of its
term. Specifically, the TLA is set at EUR 234.8 million at the
fourth interest payment date (IPD), at EUR 222.5 million at the
eighth IPD and at EUR 205.1 million at the 12th IPD. Should the TLA
not be met, a full cash sweep will take effect thus trapping all
excess cash flow (after senior and mezzanine interests are paid) to
pay down the senior loan, with the exception of principal disposal
receipts, which will be used to pay down senior and mezzanine
facility on a pro rata basis. As the TLA contractually amortizes
the senior loan significantly by 17.8% and the high DBRS net cash
flow (NCF) of EUR 25.9 million per annum, DBRS considered the TLA
feature by sizing the loan based on the TLA at the end of year
three, from when a further 1% annual amortization will be due. DBRS
also notes that assuming all liquidation assets were sold at MV and
ALA is paid to amortize the senior loan, the sponsor would still
need an additional EUR 3.4 million to meet the EUR 205.1 million
TLA by the 12th IPD. As such, the sponsor is incentivized to
dispose of more assets or achieve higher sale prices.

Another notable feature of the transaction includes tightening
financial covenants based on LTV and/or debt yield (DY), a
cash-trap-covenanted CapEx spending of EUR 10 million, of which EUR
5 million will be spent in the first two years. In case of property
disposal, the higher of 70% of net disposal proceed and the release
price (100% of the ALA for disposal properties or 120% to 125% of
the ALA for holding properties) is payable by the borrower.
Notwithstanding the above, if single buyer disposal (defined as
property sale to one single buyer, in a single portfolio sale or
multiple sales) occurred before 30 June 2020, the release premium
will be 119.3% of the disposed of ALA, subject to such single buyer
disposal not exceeding EUR 42.82 million ALA. The issuer lender
will also benefit, among other things, from first-ranking mortgages
over the properties, Daily assignment on main receivables of the
Borrowers, pledges over bank accounts, pledges over inter-company
and shareholder loans, pledge over shares and a double Lux-Co
structure. The loan documents also envisaged an adverse corporate
decision mechanism, which renders the facility to be mandatorily
repayable upon any aggressive management actions.

As of December 20, 2018 (the cut-off date), the portfolio generated
a total of EUR 31.3 million gross rental income (GRI) from over 200
assets. This is due to a high physical occupancy of 95.4%, mostly
from EDF and its ENEDIS subsidiary. The net rent of the portfolio
is reported to be EUR 30.0 million, translating into a day-1 DY of
11.2%. The senior loan LTV as of cut-off is 65%. However, to avoid
triggering a cash trap, the sponsor will need to deleverage and
maintain an LTV no higher than 55.1% by the third year of the
loan.

The senior loan carries a floating interest rate equal to
three-month Euribor (subject to zero floors) plus a margin of 2.0%.
The interest rate risk will be hedged by a prepaid cap with a
strike rate of 1.5% and to be provided by Bank of America, N.A.
However, the hedging covers only 95% of the loan amount.

A liquidity facility will be provided by Bank of America, N.A. for
a total amount of EUR 12.0 million, which equals 6.0% of the total
outstanding balance of the covered notes. The liquidity facility
can be used to cover interest shortfalls on Class A, Class B, and
Class C notes and will amortize in line with the covered amount.
According to DBRS's analysis, the commitment amount, as at closing,
could provide interest payment on the covered notes up to
approximately 23 months and 11 months based on the blended interest
hedge rate of 1.7% and the Euribor cap of 5% after loan maturity,
respectively.

The transaction is expected to repay on or before February 2, 2024,
two days after the senior loan matures. Should the loan fail to be
repaid by its maturity, this will constitute a special servicing
transfer event. The transaction will be structured with a
seven-year tail period to allow the special servicer to work out
the loan by February 2031 at the latest, which is the legal final
maturity of the notes.

Notes: All figures are in Euros unless otherwise noted.




=============
I C E L A N D
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WOW AIR: Icelandair Chief Executive Disappointed Over Collapse
--------------------------------------------------------------
Josh Spero at The Financial Times reports that Bogi Nils Bogason,
the chief executive of Icelandair, said he was disappointed that
Wow Air had failed because it was a blow to Icelandic business.

Icelandair's low-cost national competitor Wow Air recently
collapsed, the FT recounts.

According to the FT, Mr. Bogason said Icelandair twice considered
taking over Wow, including in the week before its failure, but "in
a nutshell, the company was just too leveraged".  Wow had about
US$150 million in interest-bearing debt when it went bankrupt, the
FT discloses.

He felt it had been hindered by high local costs and its size:
"It's a huge challenge for a small low-cost airline in Iceland to
compete with big airlines like . . . Wizz Air, which are flying out
of eastern Europe and have the cost structure of eastern Europe,"
the FT quotes Mr. Bogason as saying.

Wow was part of what Mr. Bogason called an "irrational" European
aviation landscape in recent years, where airlines sold seats "for
much below the cost of production", the FT relays.




=============
I R E L A N D
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RRE 1 LOAN: Moody's Assigns Ba3 Rating on EUR22.5MM Class E Notes
-----------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by RRE 1 Loan
Management Designated Activity Company:

EUR252,000,000 Class A-1 Senior Secured Floating Rate
Notes due 2032, Definitive Rating Assigned Aaa (sf)

EUR9,000,000 Class A-2 Senior Secured Floating Rate Notes
due 2032, Definitive Rating Assigned Aaa (sf)

EUR45,000,000 Class B Senior Secured Floating Rate Notes
due 2032, Definitive Rating Assigned Aa1 (sf)

EUR45,000,000 Class C Senior Secured Deferrable Floating
Rate Notes due 2032, Definitive Rating Assigned A2 (sf)

EUR30,375,000 Class D Senior Secured Deferrable Floating
Rate Notes due 2032, Definitive Rating Assigned Baa3 (sf)

EUR22,500,000 Class E Senior Secured Deferrable Floating
Rate Notes due 2032, Definitive Rating Assigned Ba3 (sf)

RATINGS RATIONALE

The rationale for the rating is based on a consideration of the
risks associated with the CLO's portfolio and structure as
described in the methodology.

RRE 1 Loan Management Designated Activity Company is a managed cash
flow CLO. At least 96.0% of the portfolio must consist of senior
secured loans and senior secured bonds and up to 4.0% of the
portfolio may consist of unsecured obligations, second-lien loans,
mezzanine loans and high yield bonds. The portfolio is expected to
be approximately 95% ramped up as of the closing date and to be
comprised predominantly of corporate loans to obligors domiciled in
Western Europe.

Redding Ridge Asset Management LLP will manage the CLO. It will
direct the selection, acquisition and disposition of collateral on
behalf of the Issuer and may engage in trading activity, including
discretionary trading, during the transaction's four and a half
year reinvestment period. Thereafter, purchases are permitted using
principal proceeds from unscheduled principal payments and proceeds
from sales of credit risk obligations and are subject to certain
restrictions.

In addition to the six classes of notes rated by Moody's, the
Issuer issued EUR 47,950,000 of subordinated notes, which are not
rated.

The transaction incorporates interest and par coverage tests which,
if triggered, divert interest and principal proceeds to pay down
the notes in order of seniority.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
March 2019.

Factors that would lead to an upgrade or downgrade of the ratings:

The rated notes' performance is subject to uncertainty. The notes'
performance is sensitive to the performance of the underlying
portfolio, which in turn depends on economic and credit conditions
that may change. RR's investment decisions and management of the
transaction will also affect the notes' performance.

Moody's modeled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in Section
2.3 of the "Moody's Global Approach to Rating Collateralized Loan
Obligations" rating methodology published in March 2019.

Moody's used the following base-case modeling assumptions:

Par amount: EUR 450,000,000

Diversity Score: 40 (*)

Weighted Average Rating Factor (WARF): 2800

Weighted Average Spread (WAS): 3.50%

Weighted Average Coupon (WAC): 5.00%

Weighted Average Recovery Rate (WARR): 43.00%

Weighted Average Life (WAL): 8.5 years

(*) The covenanted base case Diversity Score is 41, however Moody's
has assumed a diversity score of 40 as the transaction
documentation allows for the diversity score to be rounded up to
the nearest whole number whereas usual convention is to round down
to the nearest whole number.


RRE 1 LOAN: S&P Assigns BB-(sf) Rating on EUR22.50MM Class E Notes
------------------------------------------------------------------
S&P Global Ratings assigned its credit ratings to RRE 1 Loan
Management DAC's class A-1, A-2, B, C, D, and E notes.

The transaction is a European cash flow collateralized loan
obligation (CLO) managed by Redding Ridge Asset Management (UK)
LLP.

The ratings assigned to RRE 1 Loan Management's floating-rate notes
reflect our assessment of:

-- The diversified collateral pool, which comprises primarily
broadly syndicated speculative-grade senior secured term loans and
senior secured bonds that are governed by collateral quality tests.


-- The credit enhancement provided through the subordination of
cash flows, excess spread, and overcollateralization.

-- The collateral manager's experienced team, which can affect the
performance of the rated notes through collateral selection,
ongoing portfolio management, and trading.

-- The transaction's legal structure, which is bankruptcy remote.

-- The counterparty risks, which is in line with S&P's
counterparty criteria.

Under the transaction documents, the rated notes will pay quarterly
interest unless a frequency switch event occurs. Following this,
the notes will permanently switch to semiannual payments. The
portfolio's reinvestment period will end approximately four and
half years after closing.

The portfolio is well-diversified, primarily comprising broadly
syndicated speculative-grade senior secured term loans and senior
secured bonds. Therefore, S&P has conducted its credit and cash
flow analysis by applying its criteria for corporate cash flow
collateralized debt obligations.

S&P said, "In our cash flow analysis, we used the EUR450 million
target par amount, the covenanted weighted-average spread (3.50%),
the reference weighted-average coupon (5.00%), and the target
minimum weighted-average recovery rate as indicated by the
collateral manager. We applied various cash flow stress scenarios,
using four different default patterns, in conjunction with
different interest rate stress scenarios for each liability rating
category.

"Under our structured finance ratings above the sovereign criteria,
we consider that the transaction's exposure to country risk is
sufficiently mitigated at the assigned preliminary rating levels."

Until the end of the reinvestment period on Oct. 15, 2023, the
collateral manager is allowed to substitute assets in the portfolio
for so long as our CDO Monitor test is maintained or improved in
relation to the initial ratings on the notes. This test looks at
the total amount of losses that the transaction can sustain as
established by the initial cash flows for each rating, and compares
that with the default potential of the current portfolio plus par
losses to date. As a result, until the end of the reinvestment
period, the collateral manager can, through trading, deteriorate
the transaction's current risk profile, as long as the initial
ratings are maintained.

The transaction's documented counterparty replacement and remedy
mechanisms adequately mitigate its exposure to counterparty risk
under our current counterparty criteria.

The transaction's legal structure is bankruptcy remote, in line
with our legal criteria.

Following S&P's analysis of the credit, cash flow, counterparty,
operational, and legal risks, it believes its ratings are
commensurate with the available credit enhancement for each class
of notes.

POTENTIAL EFFECTS OF PROPOSED CRITERIA CHANGES

S&P said, "Our ratings are based on our cash flow CLO criteria.
However, these criteria are under review.

"As highlighted in these articles, we are soliciting feedback from
market participants on proposed changes to our criteria. We will
evaluate the market feedback which may result in further changes to
the criteria. As a result of this review, our future cash flow CLO
criteria may differ from our current criteria. The criteria change
may affect the ratings in this transaction."

  RATINGS ASSIGNED

  RRE 1 Loan Management DAC

  Class        Rating        Amount (mil. EUR)

  A-1          AAA (sf)              252.00
  A-2          AAA (sf)                9.00
  B            AA (sf)                45.00
  C            A (sf)                 45.00
  D            BBB- (sf)             30.375
  E            BB- (sf)               22.50
  Sub. notes   NR                     47.95

  NR--Not rated.




===========
K O S O V O
===========

PROCREDIT BANK SHA: Fitch Affirms 'BB+/B' Issuer Default Ratings
----------------------------------------------------------------
Fitch Ratings has affirmed ProCredit Holding AG & Co. KGaA's (PCH)
Long-Term Issuer Default Rating at 'BBB' with a Stable Outlook and
upgraded its Viability Rating (VR) to 'bb' from 'bb-'. The agency
has also affirmed the 'BBB' Long-Term IDR of German subsidiary bank
ProCredit Bank AG (PCBDE).

At the same time, Fitch has affirmed the Long-Term IDRs and VRs of
four subsidiary banks of ProCredit Holding in Bosnia & Herzegovina
(ProCredit Bank d.d. Sarajevo, PCBiH), Kosovo (ProCredit Bank
SH.A., PCBK), North Macedonia (ProCredit AD Skopje, PCBM) and
Serbia (ProCredit Bank ad Beograd, PCBS). Fitch has also affirmed
PCH's Albanian subsidiary's (ProCredit Bank Sh.a., PCBA) Long-Term
IDR at 'BB-' and downgraded its VR to 'b-' from 'b'. The Outlooks
are Stable except for PCBM, which has a Positive Outlook.

Fitch has also withdrawn the expected ratings on PCH's senior
unsecured green bonds of 'BBB(EXP)'. The rating has been withdrawn
because the bonds have not been placed as originally planned.
Although PCH intends to use this source of funding, no transaction
is currently in the pipeline.

The upgrade of PCH's VR predominantly reflects further improvement
in the group's asset quality metrics and capitalisation. The
upgrade also reflects the greater weight Fitch places on the
benefits of the group's German domicile in terms of consolidated
supervision by the German banking regulator (BaFin) and access to
domestic capital and funding markets. These benefits moderately
offset risks relating to the emerging market operating environments
that PCH is exposed to.

The downgrade of PCBA's VR reflects the bank's pre-impairment
operating losses in 2017 and 1H18 and the need for a capital
injection in 2H18 to strengthen solvency. PCH has initiated
restructuring measures at PCBA aimed at restoring its
profitability, predominantly by exploiting cost savings through
closer business ties with PCBK.

KEY RATING DRIVERS

PCH'S IDRS AND SUPPORT RATINGS

PCH's IDRs and Support Rating are driven by Fitch's view of the
potential support it can expect to receive from its core
international financial institution (IFI) shareholders: KfW
(AAA/Stable), IFC and DOEN Foundation (end-2018: combined stake of
35.7%). Apart from the three IFIs, Fitch views Zeitinger Invest
(formerly IPC) and ProCredit Staff Invest as core shareholders in
PCH. These entities have strategic control over the group, through
their status as General Partners within the KGaA structure.

Fitch's view of support is based on the long-term and strategic
commitment of the IFI shareholders, as highlighted by their role
within PCH's structure, the alignment of their own missions of
development finance with that of PCH, and a record of debt and
capital support to PCH and its subsidiary banks.

PCH's VR

PCH's 'bb' VR reflects the group's exposure to difficult emerging
market environments, the relatively narrow (except PCBK) franchises
of the subsidiary banks in their respective jurisdictions and
credit risks inherent in PCH's business model based on lending to
SMEs.

PCH's VR also reflects strong corporate governance and risk
management across the group, underpinned by supervision by BaFin of
the consolidated PCH group, and by sound management. Prudent risk
management and well controlled risk appetite have resulted in the
group's record of asset quality that consistently exceeds the
markets in which it operates. PCH's financial performance has been
stable and resilient through the cycle, including during a period
of significant change in the group's business model.

PCH's VR is based on the consolidated group's financial profile,
and does not incorporate any downward notching at the holding
company level. This reflects the following factors: i) the group is
subject to consolidated supervision and is required to meet
regulatory requirements at the consolidated level; ii) there are no
major legal restrictions in place on upstreaming capital or
liquidity from subsidiaries to PCH; iii) moderate double leverage;
iv) a simple group structure with full or large majority ownership
of banking subsidiaries; and v) common branding across the group.

The group has almost completed the implementation of its new
strategy focused on lending to SMEs and reduction of the legacy
portfolio of very small exposures (below EUR50,000). Its
geographical focus is primarily on South Eastern Europe and Eastern
Europe. The group operates through 13 banking subsidiaries in South
Eastern Europe (70% of the loan book at end-2018), Eastern Europe
(22%), South America (6%; operations in Colombia and Ecuador) and
Germany (2%).

The impaired loans ratio on a consolidated level further improved
over 2018, reflecting the new strategic focus on larger, fully
formalised SMEs. At end-2018, NPLs (defined as IFRS 9 Stage 3
loans) accounted for 3.1% of gross loans (2017: 4.5%). The coverage
of NPLs with specific loan loss allowances was moderate at around
55%, partly reflecting the highly collateralised profile of the
loan book. However, overall coverage was much stronger at around
91%, resulting in a very low 1.8% of uncovered NPLs relative to
Fitch Core Capital (FCC).

Operating profitability improved in 2018 with operating
profit/risk-weighted assets (RWA) at 1.7% (2017: 1.5%), but the
improvement was mostly due to some further cost efficiency
improvements and net release of loan loss charges driven by
recoveries of written-off loans. Net interest income suffered from
further tightening of margins and was not fully compensated by
growing fees and commissions. Fitch believes that the group's
revamped business model implemented in 2013 is likely to generate
lower loan loss charges relative to gross loans, than under the
previous focus on micro loans. However, Fitch expects them to
return to more normalised levels from what it believes was an
unsustainably low level in 2018 and 2017.

The FCC ratio increased by around 70bp to 15.4% at end-2018 despite
around 8.5% growth of RWA over 2018. The FCC improvement
predominantly resulted from a capital increase completed in 1Q18
and reasonable profits generated in 2018. The group's regulatory
capitalisation improved further with a reported CET1 ratio of 14.4%
at end-2018, comfortably above regulatory requirements. However, at
these levels it remains moderate relative to the credit risks the
group faces. Common equity double leverage at PCH was a moderate
113% at end-2018 (2017: 121%).

Granular customer deposits are the group's main source of funding.
At end-2018 they accounted for around 75% of total funding. Senior
and subordinated debt issued by PCH as well as bank funding at PCH
and IFI funding extended directly to subsidiaries complement the
funding structure. Liquidity is well-managed across the group, and
adequate reserves are held at PCH to cover potential liquidity
needs from subsidiary banks in case of stress. The maturity
structure of PCH's debt is well spread, with a large proportion of
medium/longer-term funding and only around 3% of the total maturing
over 2019.

SUBSIDIARY BANKS - IDRs AND SUPPORT RATINGS

The IDRs and Support Ratings of the five South Eastern European
(SEE) banks - PCBA, PCBiH, PCBK, PCBM and PCBS - reflect the
likelihood of potential support from their sole shareholder PCH.

This view takes into account the strategic importance of the South
Eastern European region to PCH, shown by the long standing presence
on these markets, strong integration of the subsidiary banks into
the group and a record of liquidity and funding support provided to
these entities. Fitch's assessment of support also factors in the
full ownership of subsidiaries, common branding and the potential
negative implications of a subsidiary default for the group.

However, the extent to which potential support can be factored into
the subsidiaries' ratings is constrained by the agency's assessment
of risks relating to their respective jurisdictions. Absent of
country risk constraints, the subsidiaries' Long-Term IDRs would
typically be notched down once from the parent's IDR.

PCBM and PCBS's Long-Term Foreign-Currency IDRs are constrained by
the respective Country Ceilings (North Macedonia: BB+, Serbia:
BB+). PCBA, PCBiH and PCBK's Long-Term Foreign-Currency IDRs
reflect Fitch's assessment of transfer and convertibility risks in
jurisdictions in which these banks operate. The Positive Outlook on
PCBM's IDRs reflects the Outlook on the sovereign.

PCBDE's Support Rating and the equalisation of the bank's IDRs with
those of PCH reflect Fitch's view of a high likelihood of parental
support. This view is based primarily on the bank's treasury role
within the group and a strong legal commitment in the form of a
profit and loss transfer agreement, which obliges PCH to replenish
PCBDE's equity should the latter suffer a loss. The Stable Outlook
reflects that on the parent.

SUBSIDIARY BANKS – VRs

The VRs of PCH's South-Eastern European subsidiaries reflect, to
varying degrees, the risks related to the challenging operating
environments making the banks performance prone to potential market
shocks, which cannot be fully mitigated by the benefits of the
prudent risk management framework, unique corporate culture and
strong corporate governance implemented across the PCH group. For
PCBA and PCBiH, the VRs also consider the banks' constrained
revenue and internal capital generation capacity due to limited
franchises and small scale.

All five banks' business models are focused on financing larger and
more established medium-sized businesses and development in green
lending. The banks are undergoing the implementation of new
group-wide strategy and over the last two years they have
significantly reduced their branch network, which as expected,
resulted in the loss of some market share, especially among
depositors considered non-core.

All five banks' asset quality has continued to improve, driven by
healthy new loan origination, problem loans off-loading, tight
group control and a supportive economic conditions. At end-1H18,
NPLs (Stage 3 loans) at PCBA accounted for 8.8% of gross loans,
6.3% at PCBiH (excluding fully-provisioned written-off loans as per
group definition) and 4.1% at PCBK. PCBM and PCBS's indicators were
below 2.5%. Coverage of NPLs by loan loss allowances was solid - at
over 90% for PCBA, PCBK and PCBM - or moderate at about 60%-70% at
the remaining banks. Fitch expects the banks' moderate risk
appetites will support stable asset quality in 2019 and beyond.

PCBK's strong position in its small domestic market (20% market
share in total banking sector assets at end-1H18) supports stable
and recurring profitability that allows a steady flow of dividends
to the parent. PCBM and PCBS managed to maintain a reasonable level
of profitability despite a further contraction in margins and
continued change in the client structure towards larger, more
formalised SMEs. The Kosovar subsidiary reported the strongest
operating profit/ risk-weighted assets ratios at 2.8% at end-1H18.
PCBM and PCBS's ratios stood at 1.8% and 1.5%, respectively.

Weak pre-impairment operating profitability makes PCBA and PCBiH
reliant on capital injections from shareholder. PCBiH reported a
small profit in 2018 (BAM48,500) supported by the reversal of
impairment charges. With parental support both banks maintained
capital ratios over regulatory requirements and realised growth of
business in 2018. PCBiH holds an adequate capital buffer with a FCC
ratio of 15.3% at end-1H18. Fitch views PCBA's FCC ratio of 12.7%
(3Q18) as providing only a modest buffer against unforeseen shocks
given bank's focus on SME lending, ongoing restructuring announced
by the group and difficult operating environment.

PCBK capitalisation (FCC ratio of 17.8% at end-1H18) is a rating
strength considering decent profitability, improved asset quality
and high provision coverage of NPLs. Capitalisation at PCBM and
PCBS was solid (FCC ratios of 13.0% and 18.8%, respectively, at
end-1H18) supported by reasonable profitability and strong loan
portfolio quality. Net NPLs were low (not exceeding 5% of FCC) at
both banks.

The funding mix at all five banks is dominated by customer deposits
and supported by long-term sources from IFIs earmarked for various
SMEs development projects as well as by loan facilities from the
group. PCBA and PCBK rely on retail deposits, which account for
about 80% of customer funding, while three other banks customer
deposit bases are balanced between private individuals and SMEs.
The funding gap, driven by outflow of some retail deposits recorded
in 1H18 due to branch network optimisation and solid (PCBiH, PCBM
and PCBS) or moderate (PCBA and PCBK) lending growth, was closed
with wholesale funding. Consequently, all five banks reported
higher gross loans/deposits ratios compared to end-2017.

The banks' adequate liquidity is underpinned by their large pools
of liquid assets containing cash, mandatory reserves in central
banks and, at selected banks, government or highly rated debt
securities. The liquidity coverage and net stable funding ratios
were above 100% at end-2018.

Fitch does not assign a VR to PCBDE because the bank does not have
a meaningful standalone franchise, and its operations rely strongly
on integration within the broader group.

PCBDE's role in the group is focused on providing treasury,
clearing and liquidity management services to sister banks.
Placements from sister companies and PCH tend to be short term and
are therefore reinvested in highly liquid assets. Funding provided
to sister banks is sourced from deposits attracted on the German
market. PCBDE maintains a net short position in operations with its
sister banks.

At end-3Q18, about 56% of PCBDE's assets were cash and other liquid
assets, mainly central bank deposits and interbank placements with
highly rated German banks. Funding provided to PCH group sister
banks and co-financing of some of their large credit exposures
accounted for 30% and 8% of assets at end-3Q18, respectively. The
group's international payments clearing has been centralised at
PCBDE.

PCBDE's other operations still have a narrow focus with a
medium-term goal of widening the business with German firms active
in south-east and eastern Europe. PCBDE acts as a central treasury
for the Group and sister banks place surplus liquidity there.
Placements from sister banks and other group companies (including
the holding company) accounted for about 54% of the bank's
liabilities at end-3Q18. PCBDE is also attracting deposits from
German customers, both retail and institutional. At end-3Q18 they
accounted for around 40% of PCBDE's liabilities.

The bank is a regulatory anchor for the group's consolidated
supervision by BaFin and Bundesbank. Fitch believes the regulator
would be supportive of any measures by PCH to protect German
deposits and ensure the bank's viability. A profit and loss
transfer agreement between the parent and the bank includes a
provision requiring a capital injection by the parent if PCBDE's
regulatory total capital ratio falls below 13%.

PCBDE DEPOSIT RATINGS

PCBDE's Deposit Ratings are aligned with the bank's IDRs. Fitch has
not given any Deposit Rating uplift because in Fitch's view, the
bank's qualifying debt buffers would not afford any obvious
additional benefit over and above the support benefit already
factored into the bank's IDRs, even if they reach a sufficient size
in future.

RATING SENSITIVITIES

IDRS AND SUPPORT RATINGS

A change in Fitch's view of the support available to PCH, for
example, due to the exit of one or more core shareholders, or a
change in their support stance, could be negative for PCH's IDRs.
However, the Stable Outlook reflects Fitch's view that the
propensity and ability of PCH's owners to provide support are
unlikely to change in the near to medium term. PCBDE's ratings are
likely to move in tandem with those of PCH.

The IDRs of the five SEE banks are sensitive to changes in Fitch's
assessment of support from PCH and any material weakening of the
commitment of PCH to the respective countries. Fitch does not
expect any such changes in the foreseeable future.

Changes in Fitch's perception of country risks, in particular
transfer and convertibility risks, in Albania, Bosnia &
Herzegovina, Kosovo, North Macedonia and Serbia could also result
in changes to the respective subsidiaries' IDRs. These perceptions
are most likely to change in North Macedonia given the Positive
Outlook on the sovereign rating.

VRs

Further upside for PCH's VR could result from an improvement in the
operating environments of the jurisdictions where the group has a
presence and a continued strengthening of asset quality and
capitalisation metrics. A marked deterioration in asset quality and
capitalisation would be negative for the VR.

The five subsidiary banks' VRs could be downgraded in the event of
a material worsening of their respective operating environments or
in case of a marked deterioration in asset quality that puts
pressure on banks' profitability and capitalisation.

The rating actions are as follows:

ProCredit Holding AG & Co. KGaA (PCH)

  Long-Term IDR affirmed at 'BBB'; Outlook Stable
  Short-Term IDR affirmed at 'F2'
  Viability Rating upgraded to 'bb' from 'bb-'
  Support Rating affirmed at '2'
  Senior unsecured expected rating of 'BBB(EXP)' withdrawn

PCBDE

  Long-Term IDR affirmed at 'BBB'; Outlook Stable
  Short-Term IDR affirmed at 'F2'
  Support Rating affirmed at '2'
  Long-Term Deposit Rating affirmed at 'BBB'
  Short-Term Deposit Rating affirmed at 'F2'

PCBA

  Long-Term Foreign-Currency IDR affirmed at 'BB-';
   Outlook Stable
  Short-Term Foreign-Currency IDR affirmed at 'B'
  Long-Term Local-Currency IDR affirmed at 'BB-';
   Outlook Stable
  Short-Term Local-Currency IDR affirmed at 'B'
  Viability Rating downgraded to 'b-' from 'b'
  Support Rating affirmed at '3'

PCBiH

  Long-Term Foreign-Currency IDR: affirmed at 'B+';
   Outlook Stable
  Short-Term Foreign-Currency IDR: affirmed at 'B'
  Long-Term Local-Currency IDR: affirmed at 'BB-'
    Outlook Stable
  Short-Term Local-Currency IDR: affirmed at 'B'
  Viability Rating: affirmed at 'b-'
  Support Rating: affirmed at '4'

PCBK

  Long-Term Foreign-Currency IDR: affirmed at 'BB';
   Outlook Stable
  Short-Term Foreign-Currency IDR: affirmed at 'B'
  Viability Rating: affirmed at 'b+'
  Support Rating: affirmed at '3'

PCBM

  Long-Term Foreign-Currency IDR affirmed at 'BB+';
   Outlook Positive
  Short-Term Foreign-Currency IDR affirmed at 'B'
  Long-Term Local-Currency IDR affirmed at 'BB+';
   Outlook Positive
  Short-Term Local-Currency IDR affirmed at 'B'
  Viability Rating affirmed at 'b+'
  Support Rating affirmed at '3'

PCBS

  Long-Term Foreign-Currency IDR: affirmed at 'BB+';
    Outlook Stable
  Short-Term Foreign-Currency IDR: affirmed at 'B'
  Long-Term Local-Currency IDR: affirmed at 'BB+'
    Outlook Stable
  Short-Term Local-Currency IDR: affirmed at 'B'
  Viability Rating: affirmed at 'bb-'
  Support Rating: affirmed at '3'




=================
M A C E D O N I A
=================

PROCREDIT AD SKOPJE: Fitch Affirms 'BB+/B' Issue Default Ratings
----------------------------------------------------------------
Fitch Ratings has affirmed ProCredit Holding AG & Co. KGaA's (PCH)
Long-Term Issuer Default Rating at 'BBB' with a Stable Outlook and
upgraded its Viability Rating (VR) to 'bb' from 'bb-'. The agency
has also affirmed the 'BBB' Long-Term IDR of German subsidiary bank
ProCredit Bank AG (PCBDE).

At the same time, Fitch has affirmed the Long-Term IDRs and VRs of
four subsidiary banks of ProCredit Holding in Bosnia & Herzegovina
(ProCredit Bank d.d. Sarajevo, PCBiH), Kosovo (ProCredit Bank
SH.A., PCBK), North Macedonia (ProCredit AD Skopje, PCBM) and
Serbia (ProCredit Bank ad Beograd, PCBS). Fitch has also affirmed
PCH's Albanian subsidiary's (ProCredit Bank Sh.a., PCBA) Long-Term
IDR at 'BB-' and downgraded its VR to 'b-' from 'b'. The Outlooks
are Stable except for PCBM, which has a Positive Outlook.

Fitch has also withdrawn the expected ratings on PCH's senior
unsecured green bonds of 'BBB(EXP)'. The rating has been withdrawn
because the bonds have not been placed as originally planned.
Although PCH intends to use this source of funding, no transaction
is currently in the pipeline.

The upgrade of PCH's VR predominantly reflects further improvement
in the group's asset quality metrics and capitalisation. The
upgrade also reflects the greater weight Fitch places on the
benefits of the group's German domicile in terms of consolidated
supervision by the German banking regulator (BaFin) and access to
domestic capital and funding markets. These benefits moderately
offset risks relating to the emerging market operating environments
that PCH is exposed to.

The downgrade of PCBA's VR reflects the bank's pre-impairment
operating losses in 2017 and 1H18 and the need for a capital
injection in 2H18 to strengthen solvency. PCH has initiated
restructuring measures at PCBA aimed at restoring its
profitability, predominantly by exploiting cost savings through
closer business ties with PCBK.

KEY RATING DRIVERS

PCH'S IDRS AND SUPPORT RATINGS

PCH's IDRs and Support Rating are driven by Fitch's view of the
potential support it can expect to receive from its core
international financial institution (IFI) shareholders: KfW
(AAA/Stable), IFC and DOEN Foundation (end-2018: combined stake of
35.7%). Apart from the three IFIs, Fitch views Zeitinger Invest
(formerly IPC) and ProCredit Staff Invest as core shareholders in
PCH. These entities have strategic control over the group, through
their status as General Partners within the KGaA structure.

Fitch's view of support is based on the long-term and strategic
commitment of the IFI shareholders, as highlighted by their role
within PCH's structure, the alignment of their own missions of
development finance with that of PCH, and a record of debt and
capital support to PCH and its subsidiary banks.

PCH's VR

PCH's 'bb' VR reflects the group's exposure to difficult emerging
market environments, the relatively narrow (except PCBK) franchises
of the subsidiary banks in their respective jurisdictions and
credit risks inherent in PCH's business model based on lending to
SMEs.

PCH's VR also reflects strong corporate governance and risk
management across the group, underpinned by supervision by BaFin of
the consolidated PCH group, and by sound management. Prudent risk
management and well controlled risk appetite have resulted in the
group's record of asset quality that consistently exceeds the
markets in which it operates. PCH's financial performance has been
stable and resilient through the cycle, including during a period
of significant change in the group's business model.

PCH's VR is based on the consolidated group's financial profile,
and does not incorporate any downward notching at the holding
company level. This reflects the following factors: i) the group is
subject to consolidated supervision and is required to meet
regulatory requirements at the consolidated level; ii) there are no
major legal restrictions in place on upstreaming capital or
liquidity from subsidiaries to PCH; iii) moderate double leverage;
iv) a simple group structure with full or large majority ownership
of banking subsidiaries; and v) common branding across the group.

The group has almost completed the implementation of its new
strategy focused on lending to SMEs and reduction of the legacy
portfolio of very small exposures (below EUR50,000). Its
geographical focus is primarily on South Eastern Europe and Eastern
Europe. The group operates through 13 banking subsidiaries in South
Eastern Europe (70% of the loan book at end-2018), Eastern Europe
(22%), South America (6%; operations in Colombia and Ecuador) and
Germany (2%).

The impaired loans ratio on a consolidated level further improved
over 2018, reflecting the new strategic focus on larger, fully
formalised SMEs. At end-2018, NPLs (defined as IFRS 9 Stage 3
loans) accounted for 3.1% of gross loans (2017: 4.5%). The coverage
of NPLs with specific loan loss allowances was moderate at around
55%, partly reflecting the highly collateralised profile of the
loan book. However, overall coverage was much stronger at around
91%, resulting in a very low 1.8% of uncovered NPLs relative to
Fitch Core Capital (FCC).

Operating profitability improved in 2018 with operating
profit/risk-weighted assets (RWA) at 1.7% (2017: 1.5%), but the
improvement was mostly due to some further cost efficiency
improvements and net release of loan loss charges driven by
recoveries of written-off loans. Net interest income suffered from
further tightening of margins and was not fully compensated by
growing fees and commissions. Fitch believes that the group's
revamped business model implemented in 2013 is likely to generate
lower loan loss charges relative to gross loans, than under the
previous focus on micro loans. However, Fitch expects them to
return to more normalised levels from what it believes was an
unsustainably low level in 2018 and 2017.

The FCC ratio increased by around 70bp to 15.4% at end-2018 despite
around 8.5% growth of RWA over 2018. The FCC improvement
predominantly resulted from a capital increase completed in 1Q18
and reasonable profits generated in 2018. The group's regulatory
capitalisation improved further with a reported CET1 ratio of 14.4%
at end-2018, comfortably above regulatory requirements. However, at
these levels it remains moderate relative to the credit risks the
group faces. Common equity double leverage at PCH was a moderate
113% at end-2018 (2017: 121%).

Granular customer deposits are the group's main source of funding.
At end-2018 they accounted for around 75% of total funding. Senior
and subordinated debt issued by PCH as well as bank funding at PCH
and IFI funding extended directly to subsidiaries complement the
funding structure. Liquidity is well-managed across the group, and
adequate reserves are held at PCH to cover potential liquidity
needs from subsidiary banks in case of stress. The maturity
structure of PCH's debt is well spread, with a large proportion of
medium/longer-term funding and only around 3% of the total maturing
over 2019.

SUBSIDIARY BANKS - IDRs AND SUPPORT RATINGS

The IDRs and Support Ratings of the five South Eastern European
(SEE) banks - PCBA, PCBiH, PCBK, PCBM and PCBS - reflect the
likelihood of potential support from their sole shareholder PCH.

This view takes into account the strategic importance of the South
Eastern European region to PCH, shown by the long standing presence
on these markets, strong integration of the subsidiary banks into
the group and a record of liquidity and funding support provided to
these entities. Fitch's assessment of support also factors in the
full ownership of subsidiaries, common branding and the potential
negative implications of a subsidiary default for the group.

However, the extent to which potential support can be factored into
the subsidiaries' ratings is constrained by the agency's assessment
of risks relating to their respective jurisdictions. Absent of
country risk constraints, the subsidiaries' Long-Term IDRs would
typically be notched down once from the parent's IDR.

PCBM and PCBS's Long-Term Foreign-Currency IDRs are constrained by
the respective Country Ceilings (North Macedonia: BB+, Serbia:
BB+). PCBA, PCBiH and PCBK's Long-Term Foreign-Currency IDRs
reflect Fitch's assessment of transfer and convertibility risks in
jurisdictions in which these banks operate. The Positive Outlook on
PCBM's IDRs reflects the Outlook on the sovereign.

PCBDE's Support Rating and the equalisation of the bank's IDRs with
those of PCH reflect Fitch's view of a high likelihood of parental
support. This view is based primarily on the bank's treasury role
within the group and a strong legal commitment in the form of a
profit and loss transfer agreement, which obliges PCH to replenish
PCBDE's equity should the latter suffer a loss. The Stable Outlook
reflects that on the parent.

SUBSIDIARY BANKS – VRs

The VRs of PCH's South-Eastern European subsidiaries reflect, to
varying degrees, the risks related to the challenging operating
environments making the banks performance prone to potential market
shocks, which cannot be fully mitigated by the benefits of the
prudent risk management framework, unique corporate culture and
strong corporate governance implemented across the PCH group. For
PCBA and PCBiH, the VRs also consider the banks' constrained
revenue and internal capital generation capacity due to limited
franchises and small scale.

All five banks' business models are focused on financing larger and
more established medium-sized businesses and development in green
lending. The banks are undergoing the implementation of new
group-wide strategy and over the last two years they have
significantly reduced their branch network, which as expected,
resulted in the loss of some market share, especially among
depositors considered non-core.

All five banks' asset quality has continued to improve, driven by
healthy new loan origination, problem loans off-loading, tight
group control and a supportive economic conditions. At end-1H18,
NPLs (Stage 3 loans) at PCBA accounted for 8.8% of gross loans,
6.3% at PCBiH (excluding fully-provisioned written-off loans as per
group definition) and 4.1% at PCBK. PCBM and PCBS's indicators were
below 2.5%. Coverage of NPLs by loan loss allowances was solid - at
over 90% for PCBA, PCBK and PCBM - or moderate at about 60%-70% at
the remaining banks. Fitch expects the banks' moderate risk
appetites will support stable asset quality in 2019 and beyond.

PCBK's strong position in its small domestic market (20% market
share in total banking sector assets at end-1H18) supports stable
and recurring profitability that allows a steady flow of dividends
to the parent. PCBM and PCBS managed to maintain a reasonable level
of profitability despite a further contraction in margins and
continued change in the client structure towards larger, more
formalised SMEs. The Kosovar subsidiary reported the strongest
operating profit/ risk-weighted assets ratios at 2.8% at end-1H18.
PCBM and PCBS's ratios stood at 1.8% and 1.5%, respectively.

Weak pre-impairment operating profitability makes PCBA and PCBiH
reliant on capital injections from shareholder. PCBiH reported a
small profit in 2018 (BAM48,500) supported by the reversal of
impairment charges. With parental support both banks maintained
capital ratios over regulatory requirements and realised growth of
business in 2018. PCBiH holds an adequate capital buffer with a FCC
ratio of 15.3% at end-1H18. Fitch views PCBA's FCC ratio of 12.7%
(3Q18) as providing only a modest buffer against unforeseen shocks
given bank's focus on SME lending, ongoing restructuring announced
by the group and difficult operating environment.

PCBK capitalisation (FCC ratio of 17.8% at end-1H18) is a rating
strength considering decent profitability, improved asset quality
and high provision coverage of NPLs. Capitalisation at PCBM and
PCBS was solid (FCC ratios of 13.0% and 18.8%, respectively, at
end-1H18) supported by reasonable profitability and strong loan
portfolio quality. Net NPLs were low (not exceeding 5% of FCC) at
both banks.

The funding mix at all five banks is dominated by customer deposits
and supported by long-term sources from IFIs earmarked for various
SMEs development projects as well as by loan facilities from the
group. PCBA and PCBK rely on retail deposits, which account for
about 80% of customer funding, while three other banks customer
deposit bases are balanced between private individuals and SMEs.
The funding gap, driven by outflow of some retail deposits recorded
in 1H18 due to branch network optimisation and solid (PCBiH, PCBM
and PCBS) or moderate (PCBA and PCBK) lending growth, was closed
with wholesale funding. Consequently, all five banks reported
higher gross loans/deposits ratios compared to end-2017.

The banks' adequate liquidity is underpinned by their large pools
of liquid assets containing cash, mandatory reserves in central
banks and, at selected banks, government or highly rated debt
securities. The liquidity coverage and net stable funding ratios
were above 100% at end-2018.

Fitch does not assign a VR to PCBDE because the bank does not have
a meaningful standalone franchise, and its operations rely strongly
on integration within the broader group.

PCBDE's role in the group is focused on providing treasury,
clearing and liquidity management services to sister banks.
Placements from sister companies and PCH tend to be short term and
are therefore reinvested in highly liquid assets. Funding provided
to sister banks is sourced from deposits attracted on the German
market. PCBDE maintains a net short position in operations with its
sister banks.

At end-3Q18, about 56% of PCBDE's assets were cash and other liquid
assets, mainly central bank deposits and interbank placements with
highly rated German banks. Funding provided to PCH group sister
banks and co-financing of some of their large credit exposures
accounted for 30% and 8% of assets at end-3Q18, respectively. The
group's international payments clearing has been centralised at
PCBDE.

PCBDE's other operations still have a narrow focus with a
medium-term goal of widening the business with German firms active
in south-east and eastern Europe. PCBDE acts as a central treasury
for the Group and sister banks place surplus liquidity there.
Placements from sister banks and other group companies (including
the holding company) accounted for about 54% of the bank's
liabilities at end-3Q18. PCBDE is also attracting deposits from
German customers, both retail and institutional. At end-3Q18 they
accounted for around 40% of PCBDE's liabilities.

The bank is a regulatory anchor for the group's consolidated
supervision by BaFin and Bundesbank. Fitch believes the regulator
would be supportive of any measures by PCH to protect German
deposits and ensure the bank's viability. A profit and loss
transfer agreement between the parent and the bank includes a
provision requiring a capital injection by the parent if PCBDE's
regulatory total capital ratio falls below 13%.

PCBDE DEPOSIT RATINGS

PCBDE's Deposit Ratings are aligned with the bank's IDRs. Fitch has
not given any Deposit Rating uplift because in Fitch's view, the
bank's qualifying debt buffers would not afford any obvious
additional benefit over and above the support benefit already
factored into the bank's IDRs, even if they reach a sufficient size
in future.

RATING SENSITIVITIES

IDRS AND SUPPORT RATINGS

A change in Fitch's view of the support available to PCH, for
example, due to the exit of one or more core shareholders, or a
change in their support stance, could be negative for PCH's IDRs.
However, the Stable Outlook reflects Fitch's view that the
propensity and ability of PCH's owners to provide support are
unlikely to change in the near to medium term. PCBDE's ratings are
likely to move in tandem with those of PCH.

The IDRs of the five SEE banks are sensitive to changes in Fitch's
assessment of support from PCH and any material weakening of the
commitment of PCH to the respective countries. Fitch does not
expect any such changes in the foreseeable future.

Changes in Fitch's perception of country risks, in particular
transfer and convertibility risks, in Albania, Bosnia &
Herzegovina, Kosovo, North Macedonia and Serbia could also result
in changes to the respective subsidiaries' IDRs. These perceptions
are most likely to change in North Macedonia given the Positive
Outlook on the sovereign rating.

VRs

Further upside for PCH's VR could result from an improvement in the
operating environments of the jurisdictions where the group has a
presence and a continued strengthening of asset quality and
capitalisation metrics. A marked deterioration in asset quality and
capitalisation would be negative for the VR.

The five subsidiary banks' VRs could be downgraded in the event of
a material worsening of their respective operating environments or
in case of a marked deterioration in asset quality that puts
pressure on banks' profitability and capitalisation.

The rating actions are as follows:

ProCredit Holding AG & Co. KGaA (PCH)

  Long-Term IDR affirmed at 'BBB'; Outlook Stable
  Short-Term IDR affirmed at 'F2'
  Viability Rating upgraded to 'bb' from 'bb-'
  Support Rating affirmed at '2'
  Senior unsecured expected rating of 'BBB(EXP)' withdrawn

PCBDE

  Long-Term IDR affirmed at 'BBB'; Outlook Stable
  Short-Term IDR affirmed at 'F2'
  Support Rating affirmed at '2'
  Long-Term Deposit Rating affirmed at 'BBB'
  Short-Term Deposit Rating affirmed at 'F2'

PCBA

  Long-Term Foreign-Currency IDR affirmed at 'BB-';
   Outlook Stable
  Short-Term Foreign-Currency IDR affirmed at 'B'
  Long-Term Local-Currency IDR affirmed at 'BB-';
   Outlook Stable
  Short-Term Local-Currency IDR affirmed at 'B'
  Viability Rating downgraded to 'b-' from 'b'
  Support Rating affirmed at '3'

PCBiH

  Long-Term Foreign-Currency IDR: affirmed at 'B+';
   Outlook Stable
  Short-Term Foreign-Currency IDR: affirmed at 'B'
  Long-Term Local-Currency IDR: affirmed at 'BB-'
    Outlook Stable
  Short-Term Local-Currency IDR: affirmed at 'B'
  Viability Rating: affirmed at 'b-'
  Support Rating: affirmed at '4'

PCBK

  Long-Term Foreign-Currency IDR: affirmed at 'BB';
   Outlook Stable
  Short-Term Foreign-Currency IDR: affirmed at 'B'
  Viability Rating: affirmed at 'b+'
  Support Rating: affirmed at '3'

PCBM

  Long-Term Foreign-Currency IDR affirmed at 'BB+';
   Outlook Positive
  Short-Term Foreign-Currency IDR affirmed at 'B'
  Long-Term Local-Currency IDR affirmed at 'BB+';
   Outlook Positive
  Short-Term Local-Currency IDR affirmed at 'B'
  Viability Rating affirmed at 'b+'
  Support Rating affirmed at '3'

PCBS

  Long-Term Foreign-Currency IDR: affirmed at 'BB+';
    Outlook Stable
  Short-Term Foreign-Currency IDR: affirmed at 'B'
  Long-Term Local-Currency IDR: affirmed at 'BB+'
    Outlook Stable
  Short-Term Local-Currency IDR: affirmed at 'B'
  Viability Rating: affirmed at 'bb-'
  Support Rating: affirmed at '3'




=====================
N E T H E R L A N D S
=====================

CAIRN CLO IV: Moody's Gives (P)B3 Rating on EUR16MM Class F-R Notes
-------------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to refinancing notes to be issued by
Cairn CLO IV B.V.

  EUR188,000,000 Class A-R Senior Secured Floating Rate Notes
  due 2030, Assigned (P)Aaa (sf)

  EUR29,750,000 Class B-R Senior Secured Floating Rate Notes
  due 2030, Assigned (P)Aa2 (sf)

  EUR17,250,000 Class C-R Senior Secured Deferrable Floating Rate
  Notes due 2030, Assigned (P)A2 (sf)

  EUR20,600,000 Class D-R Senior Secured Deferrable Floating Rate
  Notes due 2030, Assigned (P)Baa3 (sf)

  EUR16,250,000 Class E-R Senior Secured Deferrable Floating Rate
  Notes due 2030, Assigned (P)Ba3 (sf)

  EUR7,750,000 Class F-R Senior Secured Deferrable Floating Rate
  Notes due 2030, Assigned (P)B3 (sf)

RATINGS RATIONALE

The rationale for the rating is based on a consideration of the
risks associated with the CLO's portfolio and structure as
described in the methodology.

The Issuer will issue the new refinancing notes in connection with
the refinancing of the following previously refinanced classes of
notes: the Refinancing Class A-1 Notes, Refinancing Class A-2
Notes, Refinancing Class B-1 Notes, Refinancing Class B-2 Notes,
Refinancing Class C Notes and Refinancing Class D Notes due 2028
previously issued on April 28, 2017. On the Original Closing Date,
18 December 2014, the Issuer also issued the Class E Notes and
Class F Notes, which will now also be refinanced. On the reset
date, the Issuer will use the proceeds from the issuance of the new
refinancing notes to redeem in full all outstanding Notes.

On the Original Closing Date, the Issuer also issued EUR 32.6
million of subordinated notes, which will remain outstanding.

As part of this reset, the Issuer has set the reinvestment period
to 2 years and the weighted average life to 6.5 years. In addition,
the Issuer has amended the base matrix and modifiers that Moody's
has taken into account for the assignment of the provisional
ratings.

Cairn CLO IV is a managed cash flow CLO. At least 90% of the
portfolio must consist of senior secured loans and bonds and up to
10% of the portfolio may consist of unsecured senior loans,
second-lien loans, mezzanine obligations and high yield bonds. The
underlying portfolio is expected to be 100% ramped as of the
closing date.

Cairn Loan Investments LLP will manage the CLO. It will direct the
selection, acquisition and disposition of collateral on behalf of
the Issuer and may engage in trading activity, including
discretionary trading, during the transaction's two-year
reinvestment period. Thereafter, subject to certain restrictions,
purchases are permitted using principal proceeds from unscheduled
principal payments and proceeds from sales of credit risk
obligations and credit improved obligations.

The transaction incorporates interest and par coverage tests which,
if triggered, divert interest and principal proceeds to pay down
the notes in order of seniority.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
March 2019.

Factors that would lead to an upgrade or downgrade of the ratings:

The rated notes' performance is subject to uncertainty. The notes'
performance is sensitive to the performance of the underlying
portfolio, which in turn depends on economic and credit conditions
that may change. The collateral manager's investment decisions and
management of the transaction will also affect the notes'
performance.

Moody's modeled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in Section
2.3 of the "Moody's Global Approach to Rating Collateralized Loan
Obligations" rating methodology published in March 2019.

Moody's used the following base-case modeling assumptions:

Par Amount: EUR 302,000,000

Diversity Score: 38

Weighted Average Rating Factor (WARF): 2975

Weighted Average Spread (WAS): 3.60%

Weighted Average Coupon (WAC): 5.50%

Weighted Average Recovery Rate (WARR): 44.5%

Weighted Average Life (WAL): 6.5 years

Moody's has addressed the potential exposure to obligors domiciled
in countries with local currency ceiling (LCC) of A1 or below. As
per the portfolio constraints and eligibility criteria, exposures
to countries with LCC of A1 to A3 cannot exceed 10%, with exposures
to LCC of below A3 limited to 0%.




===============
P O R T U G A L
===============

MADEIRA: DBRS Confirms BB Long Term Issuer Rating, Trend Positive
-----------------------------------------------------------------
DBRS Ratings GmbH confirmed the Long-Term Issuer Rating of the
Autonomous Region of Madeira (Madeira) at BB and Short-Term Issuer
Rating at R-4. At the same time, DBRS changed the trend on the
Long-Term Issuer Rating to Positive from Stable; the trend on the
Short-Term Issuer Rating remains stable.

KEY RATING CONSIDERATIONS

The trend change follows the trend change to Positive from Stable
of the Republic of Portugal's Long-Term Foreign and Local Currency
– Issuer Rating of BBB on 5 April 2019. The trend change at the
sovereign level reflected DBRS's view that risks to the ratings are
tilted to the upside. In particular, Portugal's fiscal deficit is
slowly approaching balance and the government debt-to-GDP ratio as
well as Portuguese banks' non-performing loans is declining at a
healthy pace. In addition, economic growth in the country is
expected to remain above euro area average in the foreseeable
future. Given the economic and financial linkages between both
government tiers, Portugal's trend change affects positively DBRS's
analysis of Madeira's creditworthiness and supports the region's
trend change to Positive.

Madeira's ratings remain underpinned by (1) the region's
stabilizing financial performance over the last few years and
improving debt metrics supported by more favorable economic
indicators; (2) the financial oversight and support to the regional
government from the Republic of Portugal; and (3) Madeira's
enhanced control over its indirect debt as well as commercial
liabilities in the last few years through a gradual
recentralization of these liabilities onto its own balance sheet.

RATING DRIVERS

Madeira's rating could be upgraded if any or a combination of the
following occur: (1) the Portuguese sovereign rating is upgraded;
(2) Madeira substantially reduces its indebtedness; (3) Madeira's
economic indicators continue to improve and the region manages to
further diversify its economy; or (4) there are indications of a
further strengthening of the relationship between the region and
the central government.

Although less likely given the Positive trend on the rating,
negative downward pressure could materialize if any or a
combination of the following occur: (1) there is a negative rating
action on the Portuguese sovereign; (2) Madeira fails to stabilize
its financial performance and debt metrics over the medium-term;
(3) indications emerge that the financial support and oversight
currently provided by the central government weaken; or (4) there
is a reversal in the reduction of the region's indirect and
guaranteed debt.

RATING RATIONALE

Strengthening Fiscal Performance since 2013 and Steadily Declining
But Still Very High Debt Metrics

Madeira's overall fiscal performance has substantially improved in
the last five years. In particular, expenditure control and some
growth in tax revenues, reflecting tax hikes and economic growth,
have allowed the region to deliver a stronger financial
performance. The region's deficit represented 3% of operating
revenues at the end of 2018 (provisional figures), down from a very
large 74% at the end of 2013. While the 2013 financial performance
largely reflected one-off measures with sizeable capital injections
into public companies, DBRS notes that reduction in the region's
financing deficit has been steady although it has required
continuous efforts from the regional government.

After a modest deterioration in 2017, the region's financial
performance improved again in 2018. This positive credit
development primarily reflected the pick-up in corporate income tax
and value added tax compared to the previous year. While DBRS
highlights that Madeira remains subject to volatility in its tax
revenues, its overall fiscal performance should remain sound going
forward, at a near balanced budget position.

Solid gross domestic product (GDP) growth, supported by a steady
rise of the tourism sector in the region and stronger fiscal
performance have allowed Madeira to decrease its extremely high
debt ratios since 2012. While in an international comparison, the
region's debt-to-operating revenues at 498% at the end of 2018
(provisional figures) remains very high, and DBRS views positively
the downward trend it has recorded in the last few years. However,
Madeira's debt ratios continue to represent, in DBRS's view, the
main drag on the region's ratings.

Enhanced Oversight and Sovereign Guarantees Support the Rating

DBRS acknowledges that the region has taken substantial steps to
increase transparency and monitoring around its indirect and
guaranteed debt, but also to reduce its DBRS-adjusted debt stock
(which includes direct, indirect and guaranteed debt, commercial
obligations and Public Private Partnership's related obligations).
In addition, the national government's support via the Portuguese
Treasury and Debt Management Agency (IGCP) is a positive credit
feature for the region as it strengthens its overall debt
management. Nevertheless, the sustained growth in Madeira's direct
debt obligations and the very high debt stock it has accumulated
over time continue to weigh considerably on the region's ratings.

The explicit guarantees provided by the central government for the
refinancing of the regional debt and DBRS's expectation that this
support will continue going forward are positive credit features
supporting Madeira's ratings. The region's refinancing needs have
therefore fully benefited from the national government's explicit
guarantee in 2018 and will continue to do so in 2019. Going
forward, while the region's financial performance is expected to
slowly improve, additional debt reductions of a significant scale
will be critical for the region to strengthen its credit profile
further.

RATING COMMITTEE SUMMARY

The DBRS Sovereign Scorecard generates a result in the BB (high)
– BB (low) range. The main points discussed during the Rating
Committee include the relationship between the central government
and the Autonomous Region of Madeira, the debt metrics and
financial performance of the region in the last two years, the
region's governance.

KEY INDICATORS FOR THE REPUBLIC OF PORTUGAL

The following national key indicators were used for the sovereign
rating. The Republic of Portugal's rating was an input to the
credit analysis of the Autonomous Region of Madeira.

Fiscal Balance (% GDP): -0.5 (2018); -0.6 (2019F); -0.2 (2020F)
Gross Debt (% GDP): 121.5 (2018); 119.2 (2019F); 116.8 (2020F)
Nominal GDP (EUR billions): 201.6 (2018); 208.4 (2019F); 215.3
(2020F)
GDP per Capita (EUR): 19,589 (2018); 20,260 (2019F); 20,939
(2020F)
Real GDP growth (%): 2.1 (2018); 1.8 (2019F); 1.7 (2020F)
Consumer Price Inflation (%): 1.7 (2018); 1.6 (2019F); 1.8 (2020F)
Domestic Credit (% GDP): 256.1 (2017); 247.9% (Sep-2018)
Current Account (% GDP): -0.6 (2018); 0.1 (2019F); 0.0 (2020F)
International Investment Position (% GDP): -104.9% (2017); -100.8%
(2018)
Gross External Debt (% GDP): 209.4 (2017); 204.7% (2018)
Governance Indicator (percentile rank): 87.5 (2017)
Human Development Index: 0.85 (2017)

Notes: All figures are in Euros (EUR) unless otherwise noted.
Public finance statistics reported on a general government basis
unless specified. The 2018 fiscal balance and gross debt figures
from latest Agência de Gestão da Tesouraria e da Dívida
Pública. Forecasts from the European Commission. Fiscal balances
include one-offs related to capital injections to Novo Banco (0.4%
in 2018). GDP and inflation figures and forecasts from Instituto
Nacional de Estatistica Portugal and the European Commission.
Domestic credit and external debt from Bank of Portugal and
Instituto Nacional de Estatistica Portugal. Governance indicator
represents an average percentile rank (0-100) from Rule of Law,
Voice and Accountability and Government Effectiveness indicators
(all World Bank). Human Development Index (UNDP) ranges from 0-1,
with 1 representing a very high level of human development.




===========
R U S S I A
===========

BANK ASPECT: Put on Provisional Administration, License Revoked
---------------------------------------------------------------
The Bank of Russia, by virtue of its Order No. OD-809, dated April
12, 2019, revoked the banking license of Moscow-based credit
institution Joint-Stock Bank ASPECT, or ASPECT-BANK (Registration
No. 608, hereinafter, "Bank ASPECT").  The credit institution
ranked 343rd by assets in the Russian banking system1.

The Bank of Russia took this decision in accordance with Clauses 6
and 6.1, Part 1, Article 20 of Federal Law "On Banks and Banking
Activities", based on the facts that Bank ASPECT:

   -- failed to comply with Bank of Russia regulations on
countering the legalisation (laundering) of criminally obtained
incomes and the financing of terrorism.  The credit institution
submitted to the authorised body incomplete and incorrect
information about operations subject to obligatory control;

   -- conducted dubious transactions with cash foreign currency and
transit operations a substantial share of which was related to
shadow sales of cash receipts to third parties by retail trade
firms;

   -- violated federal banking laws and Bank of Russia regulations,
making the regulator repeatedly apply supervisory measures over the
last 12 months.

The Bank of Russia also cancelled Bank ASPECT's professional
securities market participant license.

The Bank of Russia appointed a provisional administration3 to Bank
ASPECT for the period until the appointment of a receiver4 or a
liquidator.  In accordance with federal laws, the powers of the
credit institution's executive bodies were suspended.

Information for depositors: Bank ASPECT is a participant in the
deposit insurance system, therefore depositors6 will be compensated
for their deposits in the amount of 100% of the balance of funds
but no more than a total of RUR1.4 million
per depositor (including interest accrued).

Deposits are repaid by the State Corporation Deposit Insurance
Agency (hereinafter, the Agency). Detailed information regarding
the repayment procedure can be obtained 24/7 at the Agency's
hotline (8 800 200-08-05) and on its website
(https://www.asv.org.ru/) in the Deposit Insurance / Insurance
Events section.


DONKHLEBBANK PJSC: Liabilities Exceed Assets, Assessment Shows
--------------------------------------------------------------
The provisional administration to manage PJSC Donkhlebbank
(hereinafter, the Bank) appointed by virtue of Bank of Russia Order
No. OD-3270, dated December 21, 2018, following revocation of its
banking license, in the course of its investigation into the Bank's
financial standing established that the Bank's management conducted
operations to misappropriate funds from customer accounts and
divert the Bank's assets through lending to borrowers with dubious
creditworthiness.

The provisional administration estimates the Bank's assets to total
RUR2.3 billion and being insufficient to cover its liabilities in
the amount of RUR2.9 billion.

On March 5, 2019, the Arbitration Court of the Rostov Region
recognized the Bank as insolvent (bankrupt).  The State Corporation
Deposit Insurance Agency was appointed as receiver.

The Bank of Russia submitted the information on the financial
transactions bearing the evidence of criminal offence conducted by
the Bank's executives to the Prosecutor General's Office of the
Russian Federation, the Ministry of Internal Affairs of the Russian
Federation and the Investigative Committee of the Russian
Federation for consideration and procedural decision-making.

The current development of the bank's status has been detailed in a
press statement released by the Bank of Russia.

The Bank of Russia submitted a claim to the Court of Arbitration of
the Irkutsk Region to declare the Bank bankrupt.  The hearing is
scheduled for April 29, 2019.

The current development of the bank's status has been detailed in a
press statement released by the Bank of Russia.


EAST-SIBERIAN TRANSPORT: Bankruptcy Hearing Set for April 29
------------------------------------------------------------
The provisional administration to manage Joint-stock Company
East-Siberian Transport Commercial Bank (hereinafter, the Bank)
appointed by virtue of Bank of Russia Order No. OD-2716, dated
October 19, 2018, following the banking license revocation, in the
course of its inspection of the Bank, established evidence
suggesting that the Bank's executives conducted operations to
either siphon off assets or conceal assets previously siphoned off
-- by making agreements to assign the Bank's receivables, lending
to borrowers with dubious solvency or unable to meet their
liabilities to the Bank or abuse of authority.

The Bank of Russia submitted a claim to the Court of Arbitration of
the Irkutsk Region to declare the Bank bankrupt.  The hearing is
scheduled for April 29, 2019.

In addition to the information sent earlier, the Bank of Russia
submitted information on financial transactions bearing the
evidence of criminal offence conducted by the Bank's executives to
the Prosecutor General's Office of the Russian Federation and the
Investigative Department of the Ministry of Internal Affairs of the
Russian Federation for consideration and procedural
decision-making.


TROIKA-D BANK JSC: On Provisional Administration, License Revoked
-----------------------------------------------------------------
The Bank of Russia, by virtue of its Order No. OD-861, dated April
17, 2019, revoked the banking license of Moscow-based Joint-stock
Company TROIKA-D BANK, JSC TROIKA-D BANK (Registration No. 3431,
hereinafter, TROIKA-D BANK).  The credit institution ranked 185th
by assets in the Russian banking system1.

The Bank of Russia took this decision in accordance with Clauses 6
and 6.1 of Part 1 of Article 20 of the Federal Law "On Banks and
Banking Activities", based on the facts that TROIKA-D BANK:

   -- failed to comply with legislation and Bank of Russia
regulations on countering the legalisation (laundering) of
criminally obtained incomes and the financing of terrorism. The
credit institution failed to timely provide credible information to
the authorised body about operations subject to obligatory
control;

   -- systematically understated the amount of provisions to be set
up and overstated the value of assets in order to improve its
financial indicators and conceal its actual financial standing. The
Bank of Russia estimates that an adequate reflection in the credit
institution's financial statements of credit risks taken and the
value of its assets will lead to a significant (over 40%) decrease
in its capital and, consequently, to grounds to take measures to
prevent the credit institution's insolvency (bankruptcy), which
creates a real threat to interests of its creditors and
depositors;

   -- performed "scheme" operations to artificially maintain its
capital to formally comply with the required ratios;

   -- repeatedly violated restrictions to carry out certain
transactions imposed by the supervisor to protect depositors'
interests;

   -- violated federal banking laws and Bank of Russia regulations,
making the regulator repeatedly apply supervisory measures over the
last 12 months, including two impositions of restrictions on
attracting household deposits.

The activities of TROIKA-D BANK bore signs of misconduct aimed at
asset diversion to the detriment of creditors and depositors. The
Bank of Russia has recurrently submitted to law enforcement
agencies information about the transactions conducted by the bank
bearing signs of a criminal offence.

The Bank of Russia also cancelled TROIKA-D BANK's professional
securities market participant license.

The Bank of Russia appointed a provisional administration to
TROIKA-D BANK for the period until the appointment of a receiver or
a liquidator.  In accordance with federal laws, the powers of the
credit institution's executive bodies were suspended.

Information for depositors: TROIKA-D BANK is a participant in the
deposit insurance system, therefore depositors7 will be compensated
for their deposits in the amount of 100% of the balance of funds
but no more than a total of 1.4 million rubles per depositor
(including interest accrued).

Deposits are repaid by the State Corporation Deposit Insurance
Agency (hereinafter, the Agency). Depositors may obtain detailed
information regarding the repayment procedure 24/7 at the Agency's
hotline (8 800 200-08-05) and on its website
(https://www.asv.org.ru/) in the Deposit Insurance / Insurance
Events section.




===========
S E R B I A
===========

PROCREDIT BANK BEOGRAD: Fitch Affirms BB+/B Issuer Default Ratings
------------------------------------------------------------------
Fitch Ratings has affirmed ProCredit Holding AG & Co. KGaA's (PCH)
Long-Term Issuer Default Rating at 'BBB' with a Stable Outlook and
upgraded its Viability Rating (VR) to 'bb' from 'bb-'. The agency
has also affirmed the 'BBB' Long-Term IDR of German subsidiary bank
ProCredit Bank AG (PCBDE).

At the same time, Fitch has affirmed the Long-Term IDRs and VRs of
four subsidiary banks of ProCredit Holding in Bosnia & Herzegovina
(ProCredit Bank d.d. Sarajevo, PCBiH), Kosovo (ProCredit Bank
SH.A., PCBK), North Macedonia (ProCredit AD Skopje, PCBM) and
Serbia (ProCredit Bank ad Beograd, PCBS). Fitch has also affirmed
PCH's Albanian subsidiary's (ProCredit Bank Sh.a., PCBA) Long-Term
IDR at 'BB-' and downgraded its VR to 'b-' from 'b'. The Outlooks
are Stable except for PCBM, which has a Positive Outlook.

Fitch has also withdrawn the expected ratings on PCH's senior
unsecured green bonds of 'BBB(EXP)'. The rating has been withdrawn
because the bonds have not been placed as originally planned.
Although PCH intends to use this source of funding, no transaction
is currently in the pipeline.

The upgrade of PCH's VR predominantly reflects further improvement
in the group's asset quality metrics and capitalisation. The
upgrade also reflects the greater weight Fitch places on the
benefits of the group's German domicile in terms of consolidated
supervision by the German banking regulator (BaFin) and access to
domestic capital and funding markets. These benefits moderately
offset risks relating to the emerging market operating environments
that PCH is exposed to.

The downgrade of PCBA's VR reflects the bank's pre-impairment
operating losses in 2017 and 1H18 and the need for a capital
injection in 2H18 to strengthen solvency. PCH has initiated
restructuring measures at PCBA aimed at restoring its
profitability, predominantly by exploiting cost savings through
closer business ties with PCBK.

KEY RATING DRIVERS

PCH'S IDRS AND SUPPORT RATINGS

PCH's IDRs and Support Rating are driven by Fitch's view of the
potential support it can expect to receive from its core
international financial institution (IFI) shareholders: KfW
(AAA/Stable), IFC and DOEN Foundation (end-2018: combined stake of
35.7%). Apart from the three IFIs, Fitch views Zeitinger Invest
(formerly IPC) and ProCredit Staff Invest as core shareholders in
PCH. These entities have strategic control over the group, through
their status as General Partners within the KGaA structure.

Fitch's view of support is based on the long-term and strategic
commitment of the IFI shareholders, as highlighted by their role
within PCH's structure, the alignment of their own missions of
development finance with that of PCH, and a record of debt and
capital support to PCH and its subsidiary banks.

PCH's VR

PCH's 'bb' VR reflects the group's exposure to difficult emerging
market environments, the relatively narrow (except PCBK) franchises
of the subsidiary banks in their respective jurisdictions and
credit risks inherent in PCH's business model based on lending to
SMEs.

PCH's VR also reflects strong corporate governance and risk
management across the group, underpinned by supervision by BaFin of
the consolidated PCH group, and by sound management. Prudent risk
management and well controlled risk appetite have resulted in the
group's record of asset quality that consistently exceeds the
markets in which it operates. PCH's financial performance has been
stable and resilient through the cycle, including during a period
of significant change in the group's business model.

PCH's VR is based on the consolidated group's financial profile,
and does not incorporate any downward notching at the holding
company level. This reflects the following factors: i) the group is
subject to consolidated supervision and is required to meet
regulatory requirements at the consolidated level; ii) there are no
major legal restrictions in place on upstreaming capital or
liquidity from subsidiaries to PCH; iii) moderate double leverage;
iv) a simple group structure with full or large majority ownership
of banking subsidiaries; and v) common branding across the group.

The group has almost completed the implementation of its new
strategy focused on lending to SMEs and reduction of the legacy
portfolio of very small exposures (below EUR50,000). Its
geographical focus is primarily on South Eastern Europe and Eastern
Europe. The group operates through 13 banking subsidiaries in South
Eastern Europe (70% of the loan book at end-2018), Eastern Europe
(22%), South America (6%; operations in Colombia and Ecuador) and
Germany (2%).

The impaired loans ratio on a consolidated level further improved
over 2018, reflecting the new strategic focus on larger, fully
formalised SMEs. At end-2018, NPLs (defined as IFRS 9 Stage 3
loans) accounted for 3.1% of gross loans (2017: 4.5%). The coverage
of NPLs with specific loan loss allowances was moderate at around
55%, partly reflecting the highly collateralised profile of the
loan book. However, overall coverage was much stronger at around
91%, resulting in a very low 1.8% of uncovered NPLs relative to
Fitch Core Capital (FCC).

Operating profitability improved in 2018 with operating
profit/risk-weighted assets (RWA) at 1.7% (2017: 1.5%), but the
improvement was mostly due to some further cost efficiency
improvements and net release of loan loss charges driven by
recoveries of written-off loans. Net interest income suffered from
further tightening of margins and was not fully compensated by
growing fees and commissions. Fitch believes that the group's
revamped business model implemented in 2013 is likely to generate
lower loan loss charges relative to gross loans, than under the
previous focus on micro loans. However, Fitch expects them to
return to more normalised levels from what it believes was an
unsustainably low level in 2018 and 2017.

The FCC ratio increased by around 70bp to 15.4% at end-2018 despite
around 8.5% growth of RWA over 2018. The FCC improvement
predominantly resulted from a capital increase completed in 1Q18
and reasonable profits generated in 2018. The group's regulatory
capitalisation improved further with a reported CET1 ratio of 14.4%
at end-2018, comfortably above regulatory requirements. However, at
these levels it remains moderate relative to the credit risks the
group faces. Common equity double leverage at PCH was a moderate
113% at end-2018 (2017: 121%).

Granular customer deposits are the group's main source of funding.
At end-2018 they accounted for around 75% of total funding. Senior
and subordinated debt issued by PCH as well as bank funding at PCH
and IFI funding extended directly to subsidiaries complement the
funding structure. Liquidity is well-managed across the group, and
adequate reserves are held at PCH to cover potential liquidity
needs from subsidiary banks in case of stress. The maturity
structure of PCH's debt is well spread, with a large proportion of
medium/longer-term funding and only around 3% of the total maturing
over 2019.

SUBSIDIARY BANKS - IDRs AND SUPPORT RATINGS

The IDRs and Support Ratings of the five South Eastern European
(SEE) banks - PCBA, PCBiH, PCBK, PCBM and PCBS - reflect the
likelihood of potential support from their sole shareholder PCH.

This view takes into account the strategic importance of the South
Eastern European region to PCH, shown by the long standing presence
on these markets, strong integration of the subsidiary banks into
the group and a record of liquidity and funding support provided to
these entities. Fitch's assessment of support also factors in the
full ownership of subsidiaries, common branding and the potential
negative implications of a subsidiary default for the group.

However, the extent to which potential support can be factored into
the subsidiaries' ratings is constrained by the agency's assessment
of risks relating to their respective jurisdictions. Absent of
country risk constraints, the subsidiaries' Long-Term IDRs would
typically be notched down once from the parent's IDR.

PCBM and PCBS's Long-Term Foreign-Currency IDRs are constrained by
the respective Country Ceilings (North Macedonia: BB+, Serbia:
BB+). PCBA, PCBiH and PCBK's Long-Term Foreign-Currency IDRs
reflect Fitch's assessment of transfer and convertibility risks in
jurisdictions in which these banks operate. The Positive Outlook on
PCBM's IDRs reflects the Outlook on the sovereign.

PCBDE's Support Rating and the equalisation of the bank's IDRs with
those of PCH reflect Fitch's view of a high likelihood of parental
support. This view is based primarily on the bank's treasury role
within the group and a strong legal commitment in the form of a
profit and loss transfer agreement, which obliges PCH to replenish
PCBDE's equity should the latter suffer a loss. The Stable Outlook
reflects that on the parent.

SUBSIDIARY BANKS – VRs

The VRs of PCH's South-Eastern European subsidiaries reflect, to
varying degrees, the risks related to the challenging operating
environments making the banks performance prone to potential market
shocks, which cannot be fully mitigated by the benefits of the
prudent risk management framework, unique corporate culture and
strong corporate governance implemented across the PCH group. For
PCBA and PCBiH, the VRs also consider the banks' constrained
revenue and internal capital generation capacity due to limited
franchises and small scale.

All five banks' business models are focused on financing larger and
more established medium-sized businesses and development in green
lending. The banks are undergoing the implementation of new
group-wide strategy and over the last two years they have
significantly reduced their branch network, which as expected,
resulted in the loss of some market share, especially among
depositors considered non-core.

All five banks' asset quality has continued to improve, driven by
healthy new loan origination, problem loans off-loading, tight
group control and a supportive economic conditions. At end-1H18,
NPLs (Stage 3 loans) at PCBA accounted for 8.8% of gross loans,
6.3% at PCBiH (excluding fully-provisioned written-off loans as per
group definition) and 4.1% at PCBK. PCBM and PCBS's indicators were
below 2.5%. Coverage of NPLs by loan loss allowances was solid - at
over 90% for PCBA, PCBK and PCBM - or moderate at about 60%-70% at
the remaining banks. Fitch expects the banks' moderate risk
appetites will support stable asset quality in 2019 and beyond.

PCBK's strong position in its small domestic market (20% market
share in total banking sector assets at end-1H18) supports stable
and recurring profitability that allows a steady flow of dividends
to the parent. PCBM and PCBS managed to maintain a reasonable level
of profitability despite a further contraction in margins and
continued change in the client structure towards larger, more
formalised SMEs. The Kosovar subsidiary reported the strongest
operating profit/ risk-weighted assets ratios at 2.8% at end-1H18.
PCBM and PCBS's ratios stood at 1.8% and 1.5%, respectively.

Weak pre-impairment operating profitability makes PCBA and PCBiH
reliant on capital injections from shareholder. PCBiH reported a
small profit in 2018 (BAM48,500) supported by the reversal of
impairment charges. With parental support both banks maintained
capital ratios over regulatory requirements and realised growth of
business in 2018. PCBiH holds an adequate capital buffer with a FCC
ratio of 15.3% at end-1H18. Fitch views PCBA's FCC ratio of 12.7%
(3Q18) as providing only a modest buffer against unforeseen shocks
given bank's focus on SME lending, ongoing restructuring announced
by the group and difficult operating environment.

PCBK capitalisation (FCC ratio of 17.8% at end-1H18) is a rating
strength considering decent profitability, improved asset quality
and high provision coverage of NPLs. Capitalisation at PCBM and
PCBS was solid (FCC ratios of 13.0% and 18.8%, respectively, at
end-1H18) supported by reasonable profitability and strong loan
portfolio quality. Net NPLs were low (not exceeding 5% of FCC) at
both banks.

The funding mix at all five banks is dominated by customer deposits
and supported by long-term sources from IFIs earmarked for various
SMEs development projects as well as by loan facilities from the
group. PCBA and PCBK rely on retail deposits, which account for
about 80% of customer funding, while three other banks customer
deposit bases are balanced between private individuals and SMEs.
The funding gap, driven by outflow of some retail deposits recorded
in 1H18 due to branch network optimisation and solid (PCBiH, PCBM
and PCBS) or moderate (PCBA and PCBK) lending growth, was closed
with wholesale funding. Consequently, all five banks reported
higher gross loans/deposits ratios compared to end-2017.

The banks' adequate liquidity is underpinned by their large pools
of liquid assets containing cash, mandatory reserves in central
banks and, at selected banks, government or highly rated debt
securities. The liquidity coverage and net stable funding ratios
were above 100% at end-2018.

Fitch does not assign a VR to PCBDE because the bank does not have
a meaningful standalone franchise, and its operations rely strongly
on integration within the broader group.

PCBDE's role in the group is focused on providing treasury,
clearing and liquidity management services to sister banks.
Placements from sister companies and PCH tend to be short term and
are therefore reinvested in highly liquid assets. Funding provided
to sister banks is sourced from deposits attracted on the German
market. PCBDE maintains a net short position in operations with its
sister banks.

At end-3Q18, about 56% of PCBDE's assets were cash and other liquid
assets, mainly central bank deposits and interbank placements with
highly rated German banks. Funding provided to PCH group sister
banks and co-financing of some of their large credit exposures
accounted for 30% and 8% of assets at end-3Q18, respectively. The
group's international payments clearing has been centralised at
PCBDE.

PCBDE's other operations still have a narrow focus with a
medium-term goal of widening the business with German firms active
in south-east and eastern Europe. PCBDE acts as a central treasury
for the Group and sister banks place surplus liquidity there.
Placements from sister banks and other group companies (including
the holding company) accounted for about 54% of the bank's
liabilities at end-3Q18. PCBDE is also attracting deposits from
German customers, both retail and institutional. At end-3Q18 they
accounted for around 40% of PCBDE's liabilities.

The bank is a regulatory anchor for the group's consolidated
supervision by BaFin and Bundesbank. Fitch believes the regulator
would be supportive of any measures by PCH to protect German
deposits and ensure the bank's viability. A profit and loss
transfer agreement between the parent and the bank includes a
provision requiring a capital injection by the parent if PCBDE's
regulatory total capital ratio falls below 13%.

PCBDE DEPOSIT RATINGS

PCBDE's Deposit Ratings are aligned with the bank's IDRs. Fitch has
not given any Deposit Rating uplift because in Fitch's view, the
bank's qualifying debt buffers would not afford any obvious
additional benefit over and above the support benefit already
factored into the bank's IDRs, even if they reach a sufficient size
in future.

RATING SENSITIVITIES

IDRS AND SUPPORT RATINGS

A change in Fitch's view of the support available to PCH, for
example, due to the exit of one or more core shareholders, or a
change in their support stance, could be negative for PCH's IDRs.
However, the Stable Outlook reflects Fitch's view that the
propensity and ability of PCH's owners to provide support are
unlikely to change in the near to medium term. PCBDE's ratings are
likely to move in tandem with those of PCH.

The IDRs of the five SEE banks are sensitive to changes in Fitch's
assessment of support from PCH and any material weakening of the
commitment of PCH to the respective countries. Fitch does not
expect any such changes in the foreseeable future.

Changes in Fitch's perception of country risks, in particular
transfer and convertibility risks, in Albania, Bosnia &
Herzegovina, Kosovo, North Macedonia and Serbia could also result
in changes to the respective subsidiaries' IDRs. These perceptions
are most likely to change in North Macedonia given the Positive
Outlook on the sovereign rating.

VRs

Further upside for PCH's VR could result from an improvement in the
operating environments of the jurisdictions where the group has a
presence and a continued strengthening of asset quality and
capitalisation metrics. A marked deterioration in asset quality and
capitalisation would be negative for the VR.

The five subsidiary banks' VRs could be downgraded in the event of
a material worsening of their respective operating environments or
in case of a marked deterioration in asset quality that puts
pressure on banks' profitability and capitalisation.

The rating actions are as follows:

ProCredit Holding AG & Co. KGaA (PCH)

  Long-Term IDR affirmed at 'BBB'; Outlook Stable
  Short-Term IDR affirmed at 'F2'
  Viability Rating upgraded to 'bb' from 'bb-'
  Support Rating affirmed at '2'
  Senior unsecured expected rating of 'BBB(EXP)' withdrawn

PCBDE

  Long-Term IDR affirmed at 'BBB'; Outlook Stable
  Short-Term IDR affirmed at 'F2'
  Support Rating affirmed at '2'
  Long-Term Deposit Rating affirmed at 'BBB'
  Short-Term Deposit Rating affirmed at 'F2'

PCBA

  Long-Term Foreign-Currency IDR affirmed at 'BB-';
   Outlook Stable
  Short-Term Foreign-Currency IDR affirmed at 'B'
  Long-Term Local-Currency IDR affirmed at 'BB-';
   Outlook Stable
  Short-Term Local-Currency IDR affirmed at 'B'
  Viability Rating downgraded to 'b-' from 'b'
  Support Rating affirmed at '3'

PCBiH

  Long-Term Foreign-Currency IDR: affirmed at 'B+';
   Outlook Stable
  Short-Term Foreign-Currency IDR: affirmed at 'B'
  Long-Term Local-Currency IDR: affirmed at 'BB-'
    Outlook Stable
  Short-Term Local-Currency IDR: affirmed at 'B'
  Viability Rating: affirmed at 'b-'
  Support Rating: affirmed at '4'

PCBK

  Long-Term Foreign-Currency IDR: affirmed at 'BB';
   Outlook Stable
  Short-Term Foreign-Currency IDR: affirmed at 'B'
  Viability Rating: affirmed at 'b+'
  Support Rating: affirmed at '3'

PCBM

  Long-Term Foreign-Currency IDR affirmed at 'BB+';
   Outlook Positive
  Short-Term Foreign-Currency IDR affirmed at 'B'
  Long-Term Local-Currency IDR affirmed at 'BB+';
   Outlook Positive
  Short-Term Local-Currency IDR affirmed at 'B'
  Viability Rating affirmed at 'b+'
  Support Rating affirmed at '3'

PCBS

  Long-Term Foreign-Currency IDR: affirmed at 'BB+';
    Outlook Stable
  Short-Term Foreign-Currency IDR: affirmed at 'B'
  Long-Term Local-Currency IDR: affirmed at 'BB+'
    Outlook Stable
  Short-Term Local-Currency IDR: affirmed at 'B'
  Viability Rating: affirmed at 'bb-'
  Support Rating: affirmed at '3'




===========================
U N I T E D   K I N G D O M
===========================

CYBG PLC: Moody's Gives Ba2(hyb) Rating to GBP250MM AT1 Securities
------------------------------------------------------------------
Moody's Investors Service assigned a Ba2(hyb) rating to the GBP250
million high-trigger Additional Tier 1 (AT1) securities 'Fixed Rate
Reset Perpetual Subordinated Contingent Convertible Notes' (ISIN
XS1959441640) issued by to CYBG PLC (CYBG), based on the final
prospectus dated March 11, 2019.

CYBG' AT1 securities are perpetual deeply subordinated instruments;
coupons may be cancelled in full or in part on a non-cumulative
basis at the issuer's discretion or mandatorily. If CYBG's
consolidated Common Equity Tier 1 (CET1) capital ratio were to fall
below 7%, the securities would be permanently converted to the
bank's shares.

RATINGS RATIONALE

According to its methodology, the Ba2(hyb) rating on CYBG's
high-trigger AT1 securities is the lower of that implied by Moody's
model and an equivalent non-viability security rating. For CYBG,
the outcome of a model-implied rating is Ba1(hyb), whilst the
non-viability security rating would be Ba2(hyb).

The model-implied rating assesses the probability of CYBG's
consolidated CET1 ratio breaching the 7% conversion trigger and the
loss severity if the trigger is breached. The model is based on (1)
CYBG's overall intrinsic credit strength measured by the baa2
adjusted baseline credit assessment (BCA) of its operating bank
Clydesdale Bank PLC, which takes into account CYBG's consolidated
financials (including recently-acquired Virgin Money PLC); (2)
CYBG's consolidated 14.5% CET1 ratio at the end of 2018; and (3)
Moody's forward-looking view on the expected development of CYBG's
CET1 ratio.

The rating of non-viability securities would take into account (1)
the baa2 adjusted BCA of Clydesdale Bank PLC; (2) high
loss-given-failure for subordinated securities issued by CYBG under
Moody's Loss Given Failure (LGF) analysis, which results in a
position one notch below the adjusted BCA; (3) the securities'
coupon skip mechanism and write-down features, which reduce the
rating by an additional two notches; and (4) the rating agency's
assessment of a low probability of government support for CYBG's
subordinated debt, leading to no rating uplift.

RATING OUTLOOK

Ratings on subordinated instruments, including AT1 instruments, do
not carry outlooks.

FACTORS THAT COULD LEAD TO AN UPGRADE/DOWNGRADE

CYBG's ratings, including the rating on its AT1 instruments, could
be upgraded if the risks related to the integration with Virgin
Money PLC reduce, profitability improves, and risks related to
conduct charges diminish.

Conversely, CYBG's ratings could be downgraded due to
weaker-than-expected profitability, including further material
legacy conduct costs.


KCA DEUTAG: Moody's Lowers CFR to Caa1, Outlook Stable
------------------------------------------------------
Moody's Investors Service has downgraded the Corporate Family
Rating of Scotland based oilfield services KCA Deutag Alpha Ltd to
Caa1 from B3 and the Probability of Default Rating to Caa1-PD from
B3-PD. Concurrently, Moody's has downgraded to Caa1 from B3 the
rating on all rated senior secured debt instruments issued by KCA
Deutag UK Finance plc. The outlook is stable.

"The downgrade reflects operational underperformance in 2018, weak
liquidity with very tight leverage covenant compliance headroom
under KCA Deutag's loan facilities and our assumption of only a
gradual improvement of the company's operating profitability and
cash flow generation over the next 12 -- 18 months," says Sven
Reinke, a Senior Vice President at Moody's, and lead analyst for
KCA Deutag.

RATINGS RATIONALE

In 2018, KCA Deutag achieved a Moody's adjusted EBITDA of around
$252 million, estimated to be around $284 million on a pro forma
basis including 12 months of contribution from Dalma (this pro
forma EBITDA includes only realized synergies) compared to $236
million for 2017. This is significantly below the rating agency's
expectations at the time of the acquisition.

The company suffered from a rig move incident on one rig in Saudi
Arabia in August 2018, which resulted in eight operating rigs being
shut down for some part of the quarter. In addition, there was
lower performance in the legacy KCA Deutag land drilling operations
as a result of the rolling off of some higher margin contracts and
the overall competitive pricing environment. KCA Deutag's legacy
land drilling business generated a reported EBITDA of $132 million
in 2018, a decline of 20% compared with the $165 million generated
in 2017. While the legacy Dalma operations showed signs of
improvement in Q4 2018 with reported EBITDA of $24 million
(including $3 million of synergies), the larger KCA Deutag legacy
land drilling operations remained weak with reported EBITDA of only
$26 million in Q4 2018. The operating performance at KCA Deutag's
other divisions remained largely flat in 2018 with reported EBITDA
of $78 million (excluding $12 million related to the collection of
an overdue receivable from MODUS) compared with $75 million in
2017.

The underperformance at the enlarged land drilling segment was also
the main driver for negative free cash flow (FCF) generation of $84
million in 2018 and a higher than previously expected Moody's
adjusted debt level of $2,081 million at the end of 2018.
Accordingly, KCA Deutag's Moody's adjusted debt / EBITDA metric
stood at around 8.2x in 2018 (around 7.3x pro forma 12 months of
contribution from Dalma including realized synergies only) thereby
exceeding the rating agency's previous guidance for the B3 rating.

Moody's expects some improvement of KCA Deutag's operating
performance in 2019 driven by the realization of higher merger
synergies (which the company projects to reach around $25 million),
the improving trend of the Dalma legacy operations post the Saudi
rig incident in Q3 2018 and some volume increase in the land
drilling and offshore services operations. However, Moody's does
not anticipate a more material increase in revenue and EBITDA
generation owing to the continued challenging pricing environment,
which will in Moody's view prevent KCA Deutag from achieving a
substantial EBITDA margin increase in 2019. Moody's projects that
KCA Deutag's FCF will remain negative in 2019 at around $70 million
as the limited improvement of the company's Moody's adjusted EBITDA
to around $310 million will not be sufficient to offset rising
capex of around $105 million (including Moody's adjustments of
around $15 million) and also some negative working capital cash
flow related to rising volumes. Accordingly, Moody's adjusted
leverage is expected to reduce to only around 6.5x in 2019, thereby
remaining outside of the rating agency's previous guidance for the
B3 rating.

KCA's ratings remain supported by (1) the company's diversified
operations between onshore (about 56% of 2018 revenue before
intra-group eliminations; 68% reported EBITDA before corporate
costs) and offshore (about 44% of 2018 revenue; 31% reported EBITDA
before corporate costs); (2) the strong presence in key oil
producing regions such as UK North Sea / Norway, Middle East and
Russia; and (3) the solid contract backlog of about $5.6 billion as
per 1st March 2019 that provides revenue visibility.

STRUCTURAL CONSIDERATIONS

At the end of 2018 KCA Deutag's debt comprises of $174 million
drawn under a senior secured revolving credit facility, senior
secured notes of $375 million due in 2021, senior secured notes of
$535 million due 2022, an outstanding senior secured term loan B of
$411 million due in 2023 and senior secured notes of $400 million
due in 2023. The company's Oman entity Oman KCA Deutag Drilling
Company LLC has an additional $32 million of funding, which is not
rated and amortises on a straight line basis to 2020.

All the senior secured notes issued by KCA Deutag UK Finance plc
and secured revolving and term facilities borrowed by KCA Deutag
Alpha Ltd rank pari passu and benefit from similar security and
guarantee packages from material subsidiaries. In addition,
guarantors have provided first-ranking security over certain of
their respective assets in support of such guarantees, including a
first-ranking security interest in the shares of KCA Deutag Alpha.

Using Moody's Loss Given Default methodology, the probability of
default rating is in line with the CFR based on a 50% recovery
rate, as is typical for transactions with senior secured notes and
first-lien senior secured bank debt with any financial maintenance
covenants. All the rated debt instruments are rated Caa1, at the
same level as the CFR.

LIQUIDITY PROFILE

Moody's regards KCA Deutag's liquidity as weak despite an adequate
cash balance of $183 million and reported available liquidity of
$186 million at the end of 2018, respectively. The headroom under
the company's loan covenants is very tight. KCA Deutag reported net
leverage of 5.7x of as December 2018 versus the 5.75x covenant
level. The covenant level will tighten to 5.5x in June 2019 and
5.25x in December 2019. However, Moody's notes that KCA Deutag
stated that it will benefit from a $25 million Holding company
equity contribution in March 2019, which improves the company's
EBITDA for covenant calculation purposes. However, Moody's
considers a breach of covenants in 2019 as likely given its more
conservative projections.

In addition, the liquidity profile will deteriorate in 2019 owing
to the projected negative FCF in Moody's base case. More
positively, KCA Deutag has very limited debt maturities in 2019 and
2020 with less than $20 million annually with the first significant
maturity being the $375 million senior secured notes due in May
2021.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's assumptions that KCA Deutag's
leverage and cash flow generation will gradually improve in 2019-20
despite the continued challenging market environment. The stable
outlook also assumes that KCA Deutag would successfully mitigate
the potential leverage covenant breach under the credit facility
with a waiver or an equity cure should the company breach the
covenant.

WHAT COULD CHANGE THE RATING UP/DOWN

Positive rating pressure is unlikely over the next 12-18 months but
the ratings could be upgraded over time if the liquidity profile
strengthens and if the company improves its operating performance
to enable it to generate positive free cash flow and to reduce its
Moody's-adjusted leverage towards 6x on a sustainable basis.

The rating would face downward pressure if the prospect of a
default becomes more likely for example as a result of a breach of
the leverage covenant (if not mitigated) or if the company's
operating performance does not improve which would decrease the
prospects of a successful refinancing of the $375 million notes due
in May 2021.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global Oilfield
Services Industry Rating Methodology published in May 2017.

Headquartered in the UK, KCA Deutag is a provider of onshore and
offshore drilling services as well as engineering services to both
International Oil Companies (IOCs) and National Oil Companies
(NOCs) in international markets. Its two largest shareholders are
Pamplona Capital Management with 33% of shares and former Dalma
shareholders (Al-Qahtani Group, Al Nasser Holdings and Gulfcap
Energy LLC) with 22%. In 2018, KCA Deutag reported revenues of
USD1.3 billion and EBITDA of $254 million.

LIST OF AFFECTED RATINGS

Downgrades:

Issuer: KCA Deutag Alpha Ltd

  Probability of Default Rating, Downgraded to Caa1-PD from
  B3-PD

  Corporate Family Rating, Downgraded to Caa1 from B3

  BACKED Senior Secured Bank Credit Facility, Downgraded to Caa1
  from B3

Issuer: DEUTAG UK Finance plc

  BACKED Senior Secured Regular Bond/Debenture, Downgraded to Caa1

  from B3

Outlook Actions:

Issuer: KCA Deutag Alpha Ltd

  Outlook, Remains Stable

Issuer: DEUTAG UK Finance plc

  Outlook, Remains Stable


TOWD POINT 2019-GRANITE4: S&P Rates $52.9MM Cl. F-Dfrd Notes 'BB'
-----------------------------------------------------------------
S&P Global Ratings assigned credit ratings to Towd Point Mortgage
Funding 2019-Granite4 PLC's class A1, B-Dfrd, C-Dfrd, D-Dfrd,
E-Dfrd, and F-Dfrd notes. At closing, Towd Point also issued
unrated class Z, XA1, and XA2 notes, and XB certificates.

S&P bases its credit analysis on a closing pool of GBP3,768.9
million (as of March 31, 2019). The pool comprises first-lien U.K.
residential mortgage loans that Landmark Mortgages Ltd. (previously
known as NRAM PLC) originated.

Landmark Mortgages Ltd. (Landmark Mortgages) is the master
servicer, but the servicing is delegated to Computershare Mortgage
Services Ltd. (Computershare Mortgage Services, a subsidiary of
Computershare). The delegated backup servicer is Capital Home Loans
Ltd.

Approximately 92% of the pool comprises standard variable rate
(SVR) loans, or loans which will revert to an SVR in the future.
Based on S&P's legal analysis and the conditions outlined in the
various servicing agreements, it has applied a SVR floor rate to
the SVR loans from day one.

S&P said, "We rate the class A1 notes based on the payment of
timely interest. Interest on the class A1 notes is equal to
three-month sterling LIBOR plus a class-specific margin.

"We treat the class B-Dfrd to F-Dfrd notes as deferrable-interest
notes in our analysis. Under the transaction documents, the issuer
can defer interest payments on these notes. While our 'AAA (sf)'
rating on the class A1 notes addresses the timely payment of
interest and the ultimate payment of principal, our ratings on the
class B-Dfrd to F-Dfrd notes address the ultimate payment of
principal and interest.

"Our ratings reflect our assessment of the transaction's payment
structure, cash flow mechanics, and the results of our cash flow
analysis to assess whether the notes would be repaid under stress
test scenarios. Subordination and excess spread provide credit
enhancement to the rated notes that are senior to the unrated notes
and certificates. Taking these factors into account, we consider
that the available credit enhancement for the rated notes is
commensurate with the credit ratings assigned."

  RATINGS ASSIGNED

  Towd Point Mortgage Funding 2019-Granite4 PLC

  Class     Rating*      Amount (mil. GBP)
  A1        AAA (sf)             3,133.3
  B-Dfrd    AA+ (sf)               198.2
  C-Dfrd    A+ (sf)                160.4
  D-Dfrd    A (sf)                  84.9
  E-Dfrd    BBB (sf)                56.6
  F-Dfrd    BB (sf)                 52.9
  Z         NR                      88.7
  XA1       NR                       N/A
  XA2       NR                       N/A
  XB        NR                       N/A

*The credit rating on the class A1 notes addresses timely receipt
of interest and ultimate repayment of principal. The ratings
assigned to the class B-Dfrd to F-Dfrd notes are interest-deferred
ratings and address the ultimate payment of interest and
principal.




===============
X X X X X X X X
===============

[*] BOOK REVIEW: Macy's for Sale
--------------------------------
Author: Isadore Barmash
Paperback: 180 pages
List price: $34.95
Review by Henry Berry
Order your personal copy today at
http://www.beardbooks.com/beardbooks/macys_for_sale.html

Isadore Barmash writes in his Prologue, "This book tells the story
of Macy's managers and their leveraged buyout, the newest and most
controversial device in the modern financial armament" when it took
place in the 1980s. At the center of Barmash's story is Edward S.
Finkelstein, Macy's chairman of the board and chief executive
office. Sixty years old at the time, Finkelstein had worked for
Macy's for 35 years. Looking back over his long career dedicated to
the department store as he neared retirement, Finkelstein was
dismayed when he realized that even with his generous stock
options, he owned less than one percent of Macy's stock. In the 185
years leading up to his unexpected, bold takeover, Finkelstein had
made over Macy's from a run-of-the-mill clothing retailer into a
highly profitable business in the lead of the lucrative and growing
fashion and "lifestyle" field.

To aid him in accomplishing the takeover and share the rewards with
him, Finkelstein had brought together more than three hundred of
Macy's top executives. To gain his support for his planned
takeover, Finkelstein told them, "The ones who have done the job at
Macy's are the ones who ought to own Macy's." Opposing Finkelstein
and his group were the Straus family who owned the lion's share of
Macy's and employees and shareholders who had an emotional
attachment to Macy's as it had been for generations, "Mother
Macy's" as it was known. But the opponents were no match for
Finkelstein's carefully laid plans and carefully cultivated
alliances with the executives. At the 1985 meeting, the
shareholders voted in favor of the takeover by roughly eighty
percent, with less than two percent opposing it.

The takeover is dealt with largely in the opening chapter. For the
most part, Barmash follows the decision making by Finkelstein, the
reorganization of the national company with a number of branches,
the activities of key individuals besides Finkelstein, Macy's moves
in the competitive field of clothing retailing, and attempts by the
new Macy's owners led by Finkelstein to build on their successful
takeover by making other acquisitions. Barmash allows at the
beginning that it is an "unauthorized book, written without the
cooperation of the buying group." But as he quickly adds, his
coverage of Macy's as a business journalist and his independent
research for over a year gave him enough knowledge to write a
relevant and substantive book. The reader will have no doubt of
this. Barmash's narrative, profiles of individuals, and analysis of
events, intentions, and consequences ring true, and have not been
contradicted by individuals he writes about, subsequent events, or
exposure of material not public at the time the book was written.

First published in 1989, the author places the Macy's buyout in the
context of the business environment at the time: the aggressive,
largely laissez-faire, Reagan era. Without being judgmental, the
author describes how numerous corporations were awakened from their
longtime inertia, while many individuals were feeling betrayed,
losing jobs, and facing uncertain futures. Isadore Barmash, a
veteran business journalist and author, was associated with the New
York Times for more than a quarter-century as business-financial
writer and editor. He also contributed many articles for national
media, Reuters America, and the Nihon Kenzai Shimbun of Japan. He
has published 13 books, including a novel and is listed in the 57th
edition of Who's Who in America.



                           *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman,
Editors.

Copyright 2019.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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                * * * End of Transmission * * *